Sunday, February 18, 2024

China Problems 2-18-24

In 2023, aggregate local government debt in China had risen to $12.58 trillion (92 trillion yuan) and the central government of People's Republic of China ordered its banks to roll over debts in a debt-restructuring. Moody’s continued Chain’s A1 credit rating, but predicted that China’s GDP was expected to have less GDP growth in 2024. China’s GDP growth had been 6% and is expected to grow at 4% in 2024. 

Sony and Samsung have moved their camera production and workforce, respectively, to Thailand. Apple's supplier GoerTek has spent $280 million on facilities in Vietnam to make AirPods. Similarly, Dell Technologies plans to stop using Chinese-produced chips by 2024.

Nike, Adidas and Samsung have all increased operations in Vietnam, and companies that produce solar panels are moving their production to Thailand. Malaysia, Bangladesh, Cambodia and the Philippines are also proving popular among apparel companies like Gap, Inc. Aug 31, 2023

The Per Capita GDP in Vietnam is $4720 per year with a population of 99.5 million and a GDP of $426B. The Per Capita GDP in Indonesia is $5509 with a population of 279 million and a GDP of $1.54T. The Per Capita GDP in Philippines is $4168 with a population of 119 million and a GDP of $436B. The Per Capita GDP in Thailand is $7560 with a population of 71.9 million and a GDP of $512B. The Per Capita GDP in Bangladesh is $1874 with a population of 174.7 million and a GDP of $431B. The Per Capita GDP of Cambodia is $2000 with a population of 17.1 million and a GDP of $29.6B. The Per Capita GDP of Malaysia is $13,434 with a population of 34 million and a GDP of $431B

Fortune Magazine’s article “The China Dilemma” reports that the cooling of US enthusiasm for China began in 2017 and intensified in March 2023 when Chinese shut down the Beijing office of US Consulting Firm Mintz for carrying out unapproved statistical investigations . The Chinese then raided Bain & Co, another US Consulting Company and took computers and phones. One executive from Mintz and another from Kroll Risk Advisors have been banned from leaving China. This news spread to other US firms in China and they may join the US companies who are continuing to leave China, because they are no longer profitable.  Those US manufacturing companies who can leave China are looking at Vietnam and Indonesia for cheap labor. Some US manufacturing companies are stuck in China because they haven’t found companies who can deliver at Chinese prices.

This may explain why President Chi visited San Francisco to see Apple and others who have operations in China. Despite recent efforts to diversify, over 95% of iPhones, AirPods, Macs, and iPads are still made in China.   Foreign Investment in China peaked at $348B in 2021, declined to $180B in 2022 and tanked to $15B in 2023.  US imports from China dropped by 20% in 2017 as US companies moved their manufacturing from China to other Asian countries and Mexico.

Tesla has acquired land in Shanghai for a megapack battery manufacturing plant with production expected to start in the fourth quarter of 2024. That suggests slower-paced progress on the project than it had planned initially.

Chinese has 219 US companies with manufacturing plants and business operations in China.

AT&T

Abercrombe & Fitch

Abbott Laboratories

Acer Electronics

Ademco Security

Adidas

ADI Security

AGI- American Gem Institute

AIG Financial

Agrilink Foods, Inc. (ProFac)

 

Allergan Laboratories

American Eagle Outfitters

American Standard

American Tourister

Ames Tools

Amphenol Corporation

Amway Corporation

Analog Devices, Inc.

Apple Computer

Armani

 

Armour Meats

Ashland Chemical

Ashley Furniture

Associated Grocers

Audi Motors

AudioVox

AutoZone, Inc.

Avon

Eastman Kodak

EchoStar

 

Eclipse CCTV

Edge Electronics Group

Electric Vehicles USA, Inc.

Eli Lilly Company

Emerson Electric

Enfamil

Estee Lauder

Eveready

Family Dollar Stores

 

FedEx

Fisher Scientific

Ford Motors

Fossil

Frito Lay

Furniture Brands International

ICON Office Solutions

IBM

Ikea

Intel Corporation

 

J.C. Penny's

J.M. Smucker Company

John Deere

Johnson Control

Johnson & Johnson

Johnstone Supply

JVC Electronics

Mars Candy

Martha Stewart Products

Mattel

 

McCormick Foods

McDonald's

McKesson Corporation

Megellan GPS

Memorex

Merck & Company

Michael's Stores

Mitsubishi Electronics

Mitsubishi Motors

Mobile Oil

 

Molex

Motorola

Motts Applesauce

Multifoods Corporation

Nabisco Foods

National Semiconductor

Nescafe

Nestles Foods

Nextar

Nike

 

Nikon

Nivea Cosmetics

Nokia Electronics

Northrop Grumman Corporation

NuSkin International

Nutrilite (see Amway)

Nvidia Corporation (G-Force)

3-M

Tai Pan Trading Company

Tamron Optics

 

100

 

Target

TDK

Tektronix, Inc

Texas Instruments

Timex

Timken Bearing

TNT

Tommy Hilfiger

Toro

Toshiba

 

Tower Automotive

Toyota

Toy's R Us, Inc.

Trader Joe's

Tripp-lite

True Value Hardware

Tupper Ware

Tyson Foods

Banana Republic

Bausch & Lomb, Inc.

 

Baxter International

Bed, Bath & Beyond

Belkin Electronics

Best Buy

Best Foods

Big 5 Sporting Goods

Black & Decker

Body Shop

Borden Foods

Briggs & Stratton

 

Calrad Electric

Campbell 's Soup

Canon Electronics

Carole Cable

Casio Instrument

Caterpillar, Inc.

CBC America

CCTV Outlet

Checker Auto

CitiCorp

 

Cisco Systems

Chiquita Brands International

Claire's Boutique

Cobra Electronics

Coby Electronics

GAP Stores

Gateway Computer

GE, General Electric

General Foods International

General Mills

 

General Motors

Gentek

Gerber Foods

Gillette Company

Goodrich Company

Goodyear Tire

Google

Gucci

Guess?

KB Home

 

Keebler Foods

Kenwood Audio

KFC, Kentucky Fried Chicken

Kimberly Clark

Knorr Foods

K-Mart

Kohler

Kohl's Corporation

Kraft Foods

Kragen Auto

 

Office Depot

Olin Corporation

Old Navy

Olympus Electronics

Orion-Knight Electronics

Pacific Sunwear, Inc.

Pamper's

Panasonic

Pan Pacific Electronics

Panvise

 

Papa Johns

Payless Shoesource

Pelco

Pentax Optics

Pep Boy's

Pepsico International

PetsMart

Petco

Pfizer, Inc.

Philips Electronics

 

Phillip Morris Companies

Pier 1 Imports

Pierre Cardin

Pillsbury Company

Pioneer Electronics

Pitney Bowes, Inc.

Pizza Hut

Plantronics

PlaySchool Toys

Polaris Industries

 

100

 

Polaroid

Polo (see Ralph Loren)

Post Cereals

Price-Pfister

Pringles

Praxair

Proctor & Gamble

PSS World Medical

Pyle Audio

Uniden Electronics

UPS

 

Valspar Corporation

Victoria 's Secret

Vizio Electronics

Volkswagen

VTech

Walgreen Company

Walt Disney Company

Walmart

WD-40 Corporation

Weller Electric Company

Western Digital

 

Westinghouse Electric

Weyerhaeuser Company

Whirlpool Corporation

Wilson Sporting Goods

Wrigley

WW Grainger, Inc.

Wyeth Laboratories

Coca Cola Foods

Colgate-Palmolive

Colorado Spectrum

ConAgra Foods

 

Cooper Tire

Corning, Inc.

Coleman Sporting Goods

Compaq

Crabtree & Evelyn

Cracker Barrel Stores

Craftsman Tools (see Sears)

Cummins, Inc.

Dannon Foods

Dell Computer

Del Monte Foods

 

Dewalt Tools

DHL

Dial Corporation

Diebold, Inc.

Dillard's, Inc.

Dodge-Phelps

Dole Foods

Dollar Tree Stores, Inc.

Dow-Corning

Haagen-Dazs

Harley Davidson

 

Hasbro Company

Heinz Foods

Hershey Foods

Hitachi

Hoffman-LaRoche

Holt's Automotive Products

Hormel Foods

Home Depot

Honda Motor

Hoover Vacuum

HP Computer

 

Honda

Honeywell

Hubbell Inc.

Huggies

Hunts-Wesson Foods

Land's End

Lee Kum Kee Foods

Lexmark

LG Electronics

Lipton Foods

L.L. Bean, Inc.

 

Logitech

Libby's Foods

Linen & Things

Lipo Chemicals, Inc.

Lowe's Hardware

Lucent Technologies

Lufkin

Qualcomm

Quest One

Radio Shack

Ralph Loren

 

RCA

Reebok International

Reynolds Aluminum

Revlon

Rohm & Hass Company

Samsonite

Samsung

Sanyo

Shell Oil

Schwinn Bike

Sears-Craftsman

 

Seven-Eleven (7-11)

Sharp Electronics

Sherwin-Williams

Shure Electronics

Sony

Speco Technologies/Pro Video

Shopko Stores

Skechers Footwear

SmartHome

Smucker's (see J.M. Smucker's)

Solar Power, Inc.

Spencer Gifts

Stanley Tools

 

100

 

Staple's

Starbucks Corporation

Steelcase, Inc.

STP Oil

Sunkist Growers

SunMaid Raisins

Sunglass Hut

Sunkist

Subway Sandwiches

Switchcraft Electronics

SYSCO Foods

 

Sylvania Electric

X-10

Xelite

Xerox

Yahoo

Yamaha

Yoplait Foods

Yum Brands

Zale Corporation

219 US companies have manufacturing and business operations in China

NOTATION - even though this is a very long list of American and other foreign corporations in China, it is certainly not a complete listing. We have only included a few of the names you may recognize. This is a list of companies who either own factories, or have contract factories producing their products in China. Some of the companies produce 100% of their products there, and others only produce parts, or certain ingredients for their products. The list below is approximately 1% of the actual Corporate list. Companies such as Avon, GE, and AT&T for example, have been in China and manufacturing products for 20 to 30 years. Most American consumers simply had no idea. Previously their source was Japan - Source

https://www.esdaw.eu/american--international-corporations---china.html

China’s Per Capita GDP is $13.016 per year. In 2000 it was $954.40.

https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=CN


The U.S. poverty rate saw its largest one-year increase in history. 12.4% of Americans now live in poverty according to new 2022 data from the U.S. census, an increase from 7.4% in 2021. Child poverty also more than doubled last year to 12.4% from 5.2% the year before.

 

The U.S. poverty level is now $13,590 for individuals and $23,030 for a family of three. The new data shows that 37.9 million people lived in poverty in 2022.

 

Ford sales in China peaked in 2016 with 828537 cars sold and a 3.77% market share. Sales in 2022 were 219248 cars and a 1.06% market share.

 

GM sales in China in held on in 2023 with 2.1 million cars sold.

Norb Leahy, Dunwoody GA Tea Party Leader

 

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