U.S. MULLS SWEETENERS FOR FIRMS PULLING OUT OF CHINA
White House is mulling cash rewards and tax breaks for U.S. companies that will move out of China just like what Japan did to encourage its companies to abandon Beijing and return home.
China is the source of 18% percent of all U.S. imports and the current administration has been doing its utmost to punish Beijing for not buying enough U.S. beef, pork, chicken, corn, wheat, soybean and other farm products but higher tariffs on Chinese products only raised domestic prices in the US mainland.
To sweeten the pot, as it were, Reuters reported on May 18, 2020 that U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies, starting with the $25 billion “reshoring fund.”
“President Donald Trump has long pledged to bring manufacturing back from overseas, but the recent spread of the coronavirus and related concerns about U.S. medical and food supply chains dependency on China are ‘turbocharging’ new enthusiasm for the idea in the White House.” Reuters stressed. #coronavirusimpact #COVID19