When a factory in one of these towns designed a new product, others nearby could quickly copy it or produce their own version, a bit different. There is even a Chinese word for these copies: Shanghai. Creating a dense and fast concentrated ecosystem like this takes many years of concentration. All require a significant flexibility of the supply chain. I don't think any this is built in a day. It requires long -term cooperation among technical staff at different levels, according to
Factories will not appear overnight
Many US business owners told Wired that when they discovered in the country in the past, they had many challenges, such as higher costs, finding raw material supply, lack of labor available and limited as prescribed.
Logan said he had experienced all the ideas, starting his own needle cartridge production in the US, but he knew it would cost about $ 8 to $ 10 million just to bring the factory to operate, including machinery costs, creating molds and building a sterilized part. China is also the only country that produces automatic machines he needs, where Trump's tariffs still try if he tries on the shore right now.
Kim Vaccarella, the founder and CEO of a Bag Company called Bogg, producing products from EVA, a by -products like rubber petroleum are also used for Flipflops and Yoga. Vaccarella said that she could produce EVA products in Vietnam, but when she researched to supply from there, she found that many factories were Chinese engineers owned by China. China was proficient in Eva. They have made shoes at EVA for more than 20 years, so that is really our first choice, according to Mr. Vaccacella.
If Bogg tried to move his production to the US, Vaccarella said that she believed that she would also need to hire Chinese talents to help ensure the production lines were established exactly. But she worried that it would be difficult, especially with the current Trump administration policies to reduce immigration. With everything that is happening to our border, it is difficult to get a visa for Chinese partners and can help us build this business? She asked.
Another challenge is that the supply chain for many products has been fully globalized, with different steps spread out between different areas where each area has its own unique comparative advantage. Take lithium for a battery, for example, it can first be exploited in Chile or Australia, then sent to China for screening, then sent to Japan or South Korea to be packed, and finally transferred to Europe or the US to be put into a car.
Hugh Grant-Chapman, a collaborator of the United States, said that moving those supply chains to the United States basically means that US factories must win on each node, not just the final product. And I think it was a real challenge, he said, Hugh Grant-Chapman, a collaborator at the Center for Strategic and International Research Research in our context.
Still in the state of limb
With Trump's tariff policies seem to change almost every week, business owners do not know what their companies will be tomorrow. Some people have stopped ordering for products and materials during this time, while others are closing, at least temporarily.
Walton, who sells spy equipment, said he did not order from China at this time, but some of his colleagues had containers of products currently moving to the US and was nervous to check what the new tax on them would be. He also heard some friends who were abandoning employees to prepare for potential economic difficulties ahead.
In the end, businesses want everything at the right price and they do not want to lose customers or employees On social media. What these tax rates are doing is that they are making us choose between our staff or customers. Anyway, it is bad for the economy.