Trump administration pushing to rip global supply chains from China: officials

[webfact]

Trump administration pushing to rip global supply chains from China: officials

By Humeyra Pamuk and Andrea Shalal

 

FILE PHOTO: Containers of Chinese companies China Shipping and COSCO (China Ocean Shipping Company) are loaded on a container as it is leaving the port in Hamburg, Germany March 11, 2020. REUTERS/Fabian Bimmer

 

WASHINGTON (Reuters) - The Trump administration is "turbocharging" an initiative to remove global industrial supply chains from China as it weighs new tariffs to punish Beijing for its handling of the coronavirus outbreak, according to officials familiar with U.S. planning.

 

President Donald Trump, who has stepped up recent attacks on China ahead of the Nov. 3 U.S. presidential election, has long pledged to bring manufacturing back from overseas.

 

Now, economic destruction and the U.S. coronavirus death toll are driving a government-wide push to move U.S. production and supply chain dependency away from China, even if it goes to other more friendly nations instead, current and former senior U.S. administration officials said.

 

"We’ve been working on (reducing the reliance of our supply chains in China) over the last few years but we are now turbo-charging that initiative," Keith Krach, undersecretary for Economic Growth, Energy and the Environment at the State Department told Reuters.

 

"I think it is essential to understand where the critical areas are and where critical bottlenecks exist," Krach said, adding that the matter was key to U.S. security and one the government could announce new action on soon.

 

The U.S. Commerce Department, State and other agencies are looking for ways to push companies to move both sourcing and manufacturing out of China. Tax incentives and potential re-shoring subsidies are among measures being considered to spur changes, the current and former officials told Reuters.

 

“There is a whole of government push on this,” said one. Agencies are probing which manufacturing should be deemed "essential" and how to produce these goods outside of China.

 

Trump's China policy has been defined by behind-the-scenes tussles between pro-trade advisers and China hawks; now the latter say their time has come.

 

"This moment is a perfect storm; the pandemic has crystallized all the worries that people have had about doing business with China," said another senior U.S. official.

 

"All the money that people think they made by making deals with China before, now they’ve been eclipsed many fold by the economic damage" from the coronavirus, the official said.

 

ECONOMIC PROSPERITY NETWORK

Trump has said repeatedly that he could put new tariffs on top of the up to 25% tax on $370 billion in Chinese goods currently in place.

 

U.S. companies, which pay the tariffs, are already groaning https://www.reuters.com/article/us-health-coronavirus-tariffs/trumps-tariffs-add-to-pandemic-induced-turmoil-of-u-s-manufacturers-idUSKBN22C1MY under the existing ones, especially as sales plummet during coronavirus lockdowns.

 

But that does not mean Trump will balk at new ones, officials say. Other ways to punish China may include sanctions on officials or companies, and closer relations with Taiwan, the self-governing island China considers a province.

 

Commerce on Monday launched a national security probe that could lead to new U.S. tariffs on imports of key components of power transformers, saying it needed assured domestic access to such goods to be able to respond to power disruptions.

 

Discussions about moving supply chains are concrete, robust, and, unusually for the Trump administration, multi-lateral.

 

The United States is pushing to create an alliance of "trusted partners" dubbed the "Economic Prosperity Network," one official said. It would include companies and civil society groups operating under the same set of standards on everything from digital business, energy and infrastructure to research, trade, education and commerce, he said.

 

The U.S. government is working with Australia, India, Japan, New Zealand, South Korea and Vietnam to "move the global economy forward," Secretary of State Mike Pompeo said April 29.

 

These discussions include “how we restructure ... supply chains to prevent something like this from ever happening again," Pompeo said.

Latin America may play a role, too.

 

Colombian Ambassador Francisco Santos last month said he was in discussions with the White House, National Security Council, Treasury Department and U.S. Chamber of Commerce about a drive to encourage U.S. companies to move some supply chains out of China and bring them closer to home.

 

China overtook the United States as the world's top manufacturing country in 2010, and was responsible for 28% of global output in 2018, according to United Nations data.

 

The pandemic has highlighted China's key role in the supply chain for generic drugs https://www.reuters.com/article/us-health-coronavirus-pharmaceuticals-ap/chinas-coronavirus-induced-supply-chain-woes-fan-concerns-of-possible-drug-shortages-idUSKBN20Y1C7 that account for the majority of prescriptions in the United States. It has also shown China's dominance in goods like https://www.reuters.com/article/us-health-coronavirus-amazon-com-cameras/exclusive-amazon-turns-to-chinese-firm-on-u-s-blacklist-to-meet-thermal-camera-needs-idUSKBN22B1AL

the thermal cameras needed to test workers for fevers, and its importance in food supplies.

 

HARD SELL FOR COMPANIES

Many U.S. companies have invested heavily in Chinese manufacturing and rely on China's 1.4 billion people for a big chunk of their sales.

 

"Diversification and some redundancy in supply chains will make sense given the level of risk that the pandemic has uncovered," said Doug Barry, spokesman for the U.S.-China Business Council. "But we don’t see a wholesale rush for the exits by companies doing business in China."

 

White House trade adviser Peter Navarro on Monday said Trump had already signed an order that could allow limits on imports of components for the U.S. power grid from Russia and China, and would soon issue a separate order that would require federal agencies to purchase U.S.-made medical products.

 

John Murphy, senior vice president for international policy at the Chamber of Commerce, said that U.S. manufacturers already meet 70% of current pharmaceutical demand.

 

Building new facilities in the United States could take five to eight years, he said. "We're concerned that officials need to get the right fact sets before they start looking at alternatives," Murphy said.

 

Trump White House pledges to punish China have not always been followed by action.

 

A move to block global exports of chips to blacklisted Chinese telecoms giant Huawei, for example, favored by hawks in the administration and under consideration since November, has not yet been finalized.

 

(Additional reporting by Alex Alper, David Lawder, Matt Spetalnick and David Brunnstrom; Writing by Heather Timmons; Editing by Tom Brown and Sonya Hepinstall)

 

-- © Copyright Reuters 2020-05-05

 

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[4MyEgo]

This is one of those bad prolonged weddings, when that jealous X will do anything to try and destroy you when it's over.

 

Trump is just deflecting and trying to hold onto another term after this unfortunate incident knocked him off his throne because he failed to act quickly to stop the spread into the USA which had killed tens of thousands of his fellow Americans, cheer leader Trump will go down in history as the biggest idiot president America ever had, after George W Bush, well maybe even.

 

Man up Trump, it's game over for you.

Edited May 5, 2020 by 4MyEgo

[Thailand]

I think China currently has the upper hand and have spent the last few months seeking alternative markets until this imbecile is removed from office and common sense prevails.

It is the administration clutching at deflection straws to appease the declining voter base.

 

Sadly Biden does not create confidence either but then you get what you deserve.

Edited May 5, 2020 by Thailand

[unamazedloso]

Why do so many defend china when the writings on the wall? Chinese people living in other countries will verify this that they aint a friend so why support their growth at the cost of your own? Makes sense!

[Puchaiyank]

It just makes good business sense to spread US imports to several countries instead of relying on a destructive Chinese government.

[RoadWarrior371]

21 minutes ago, Thailand said:

I think China currently has the upper hand and have spent the last few months seeking alternative markets until this imbecile is removed from office and common sense prevails.

Alternative markets?  To the US trade deficit.  LMAO.  Maybe your little third world country will pick up the tab.  Was it Chi-knob-slobia?

[Curt1591]

[stevenl]

17 minutes ago, unamazedloso said:

Why do so many defend china when the writings on the wall? Chinese people living in other countries will verify this that they aint a friend so why support their growth at the cost of your own? Makes sense!

Nothing to do with defending China.

 

China has a long term strategy, US 2 years after which preparations begin for a new election with the rhetoric and policies soon to be retracted that belong to that.

[GreasyFingers]

20 minutes ago, TopDeadSenter said:

He is right to capitalize on this man made disaster to bring back home the supply chain.  It punishes China and strengthens America

Do not mention the war inflation.

[nausea]

A losing battle, if you ask me. It's only a matter of time before China becomes the preeminent force in the world, assuming they don't implode as happened with the USSR, hence the emphasis on social stability overriding all other concerns. These are dangerous times. The question is, can a declining power with unrivalled military might (for now) give up the crown gracefully.

[worgeordie]

56 minutes ago, Curt1591 said:

Because its cheap and companies can make good profits on the <deleted> goods.

regards Worgeordie

[sandyf]

1 hour ago, Puchaiyank said:

It just makes good business sense to spread US imports to several countries instead of relying on a destructive Chinese government.

Nothing more destructive than a US government, but selective memory prevails.

[CaptRon2]

58 minutes ago, Tug said:

Trump received a crisis and failed so far his inept response has cost many thousands of lives it does make sense to diversify the supply chain that’s been a topic of discussion for decades it does not make sense to vilify a foreign nation in time of crisis it should be a time of cooperation and unity to defeat a common enemy but trump needs a deflection so all bets are off 

President Trumps early travel restrictions saved countless lives and his response has been stellar.

President Trump’s does not need to deflect on this, it is a strong point for the Republicans and a the behavior of the Democrats is what will lead to their losing the House to as more of their shortcomings are exposed.

Holding a foreign country accountable for their actions is to be commended not criticized, and since you have already stated unity and cooperation are what is needed perhaps you should be supporting the duly elected President of your country, instead of pandering to the country that cause this global crisis.

[Bluespunk]

2 hours ago, webfact said:

Trump White House pledges to punish China have not always been followed by action.

 

A move to block global exports of chips to blacklisted Chinese telecoms giant Huawei, for example, favored by hawks in the administration and under consideration since November, has not yet been finalized.

And there is no reason to think this will be any different. Just more deflection from trump. 
 

For one thing, who will trust a trump White House to honour any agreement it enters into?

Edited May 5, 2020 by Bluespunk

[Thailand]

"US to borrow record $3tn as spending soars"

 

Could always ask China for some more. ????

Ah, but didn't Trump threaten to cancel existing debt with China, could it be they won't trust him? 

[Walker88]

24 minutes ago, CaptRon2 said:

President Trumps early travel restrictions saved countless lives and his response has been stellar.

President Trump’s does not need to deflect on this, it is a strong point for the Republicans and a the behavior of the Democrats is what will lead to their losing the House to as more of their shortcomings are exposed.

Holding a foreign country accountable for their actions is to be commended not criticized, and since you have already stated unity and cooperation are what is needed perhaps you should be supporting the duly elected President of your country, instead of pandering to the country that cause this global crisis.

No. He ignored the warnings, which first came to him in November 2019. Eighteen times warnings were put into the PDB. He ignored them all.  He also dismantled the Pandemic Response Team that had been set up during the Obama Administration, which was used so successfully to ringfence the Ebola outbreak.

 

His supposed "China Ban" had so many loopholes it still allowed tens of thousands of Chinese into the US. Also, he was warned as early as January that the virus had spread to Europe and was making its way to Europe through a route other than China.

 

He failed to use the War Powers Act to instruct the development of tests and to begin building ventilators.

 

He claimed, falsely, that everyone repatriated from China was being tested. They were not. Some spread the virus. He claimed anyone who wanted to get a test could get one. They could not. He made all sorts of spurious claims about how many tests could be carried out daily, when in fact the US even today, in May, has tested fewer people than he claims he is doing every day.

 

He pushed a dangerous anti-malaria drug as a cure, when all the scientific evidence said otherwise.

 

He suggested injection or consumption of bleach and disinfectants, causing Poison Control Lines to ring off the hook, then he claimed he was 'being sarcastic' (a lie), and making matters even worse because that excuse says he's okay with 'making jokes' about an affliction that is killing tens of thousands of Americans.

 

He is demanding pork and other meat producers go back to work, despite the fact the employees cannot get tested and are afraid, while he will not allow anyone near him who hasn't been repeatedly tested.

 

He ignored warnings from Anthony Fauci.

 

He ignored warning from Peter Navarro.

 

He ignored repeated warnings from CIA, which were based on both HUMINT and SIGINT sources, plus analysis by medical experts within the agency (yes, the agency has doctors and health experts).

 

His inaction, his false statements, his bungling of testing, his use of needed PPE and medical equipment as bait to individual US States, his absurdities that demonstrate his total lack of understanding of any science, his dismantling of a comprehensive Pandemic Response Apparatus, his slashed funding in 2017 onward for CDC, all contributed to unnecessary deaths in the US.

 

And now, incapable of accepting any responsibility, he points fingers at Dr Fauci, China, Obama, CNN, anybody other than the man in the mirror.

Edited May 5, 2020 by Walker88
spelling

[Eric Loh]

I find this quite amusing and I seriously think Trump is posturing and want his supporters to feel that he is a tough guy. 

White House was rumored that they intend to limit investment ties between the world’s two largest economies. That is as silly as it sound as it will harm led US companies and people, create turmoil in the already weakened financial markets, endanger global trade and economic growth. Yuan will depreciate and will hurt all the sundry exports from lower China demand. It’s all bluff and bluster from an insecure man. 

[Rimmer]

A post and a reply stating definitively that convid-19 is man made has been removed

We still do not know for certain if this virus is man made or not.

[finnsk]

China is the worlds low cost manufactor. Give cheap products, we all love it. We can choose if we want low or high quality all up to the customers. 

 

Trump want to take all the american production back to the states, good luck, welcome to high prices, and the quality ? Make america poor without friends and no export, good luck Trump

[dimitriv]

2 hours ago, Thailand said:

I think China currently has the upper hand and have spent the last few months seeking alternative markets until this imbecile is removed from office and common sense prevails.

 

Common sense ?

 

People don't understand that buying Chinese products is not as cheap as it seems. And certainly not if people in your own country are unemployed and have no money to spend. 

 

Bringing production back to your own country is a very good idea.

 

 

 

[Sujo]

No one forces any company to deal with china or open operations in china. So stop blaming china for that nonsense.

 

Now Mr President, how about focusing on the virus issue, that thing thats killing tens of thousands of your citizens. Stop complaining that gwb didnt tweet his support to you while you were being impeached.  Stop saying how happy you are that kim jong un is alive and well. Stop saying drugs cure it when it wont. Stop telling people to ignore your own lockdown rules. 

 

You are not a stable genius, listen to the experts you appointed to deal with this. Stop being an idiot.

[Logosone]

Will this new economic group led by the USA be a piracy conglomerate that specialises in stealing masks on a global scale?

 

The USA goes stealing masks from pure and innocent countries like Germany, France and Brazil and has the nerve to complain about China?

 

Where are our masks!

 

Pirate!!!!!

 

I'm pretty sure China sold them to us. So where are our masks?

Edited May 5, 2020 by Logosone

[CaptRon2]

56 minutes ago, Walker88 said:

No. He ignored the warnings, which first came to him in November 2019. Eighteen times warnings were put into the PDB. He ignored them all.  He also dismantled the Pandemic Response Team that had been set up during the Obama Administration, which was used so successfully to ringfence the Ebola outbreak.

 

His supposed "China Ban" had so many loopholes it still allowed tens of thousands of Chinese into the US. Also, he was warned as early as January that the virus had spread to Europe and was making its way to Europe through a route other than China.

 

He failed to use the War Powers Act to instruct the development of tests and to begin building ventilators.

 

He claimed, falsely, that everyone repatriated from China was being tested. They were not. Some spread the virus. He claimed anyone who wanted to get a test could get one. They could not. He made all sorts of spurious claims about how many tests could be carried out daily, when in fact the US even today, in May, has tested fewer people than he claims he is doing every day.

 

He pushed a dangerous anti-malaria drug as a cure, when all the scientific evidence said otherwise.

 

He suggested injection or consumption of bleach and disinfectants, causing Poison Control Lines to ring off the hook, then he claimed he was 'being sarcastic' (a lie), and making matters even worse because that excuse says he's okay with 'making jokes' about an affliction that is killing tens of thousands of Americans.

 

He is demanding pork and other meat producers go back to work, despite the fact the employees cannot get tested and are afraid, while he will not allow anyone near him who hasn't been repeatedly tested.

 

He ignored warnings from Anthony Fauci.

 

He ignored warning from Peter Navarro.

 

He ignored repeated warnings from CIA, which were based on both HUMINT and SIGINT sources, plus analysis by medical experts within the agency (yes, the agency has doctors and health experts).

 

His inaction, his false statements, his bungling of testing, his use of needed PPE and medical equipment as bait to individual US States, his absurdities that demonstrate his total lack of understanding of any science, his dismantling of a comprehensive Pandemic Response Apparatus, his slashed funding in 2017 onward for CDC, all contributed to unnecessary deaths in the US.

 

And now, incapable of accepting any responsibility, he points fingers at Dr Fauci, China, Obama, CNN, anybody other than the man in the mirror.

Nice response with a few good debatable arguments, although the early warnings are somewhat questionable, and the conflicting information from the WHO and China make determining when this should have been panic mode hard to determine.

As far as the loopholes in the travel ban that does not mean he did not save numerous lives with what he did. As you are aware many of the people who were allowed to enter the country were American citizens returning from China. Considering all the Democrats crying with the restrictions as they were, I can imagine the noise if he was denying American citizens reentry.

As far as the dismantling of the Pandemic Response Team please refer to Reuter’s fact check, March 26”  Partly False claim: Trump fired entire pandemic response team in 2018. You are correct it was an essential part of stopping the Ebola outbreak, however it was just absorbed into the NSC.

on March 14 John Bolton described the changes made as streamlining.

Boltons final words in the article “The angry left just can’t stop attacking, even in a crisis”

i appreciate your constructive response to my post, you have not really changed my opinion but you did present some nice opposing points of view.

[OneMoreFarang]

3 hours ago, unamazedloso said:

Why do so many defend china when the writings on the wall? Chinese people living in other countries will verify this that they aint a friend so why support their growth at the cost of your own? Makes sense!

Do so many defend China?

Please compare the Chinese government with the US government. Who is more consistent? Who makes more sense? Who talks BS all the time?

Should we blame China if they can offer lots of products and services a lot cheaper than so called first world countries?

Should we blame China when other nation's leaders ignore news from China and think they are immune against Corona?

 

There was a time when lots of people looked up to the United states, their quality, their freedom, their justice, etc. But that is a long time ago. Now most people outside the USA only see a nation in decline and their elected leader is trying his very best to bring them down down down. Yeah, great job Donald - and all the people who still support him.

[Lacessit]

26 minutes ago, OneMoreFarang said:

Do so many defend China?

Please compare the Chinese government with the US government. Who is more consistent? Who makes more sense? Who talks BS all the time?

Should we blame China if they can offer lots of products and services a lot cheaper than so called first world countries?

Should we blame China when other nation's leaders ignore news from China and think they are immune against Corona?

 

There was a time when lots of people looked up to the United states, their quality, their freedom, their justice, etc. But that is a long time ago. Now most people outside the USA only see a nation in decline and their elected leader is trying his very best to bring them down down down. Yeah, great job Donald - and all the people who still support him.

We should be blaming the CCP for suppressing information about the initial outbreak, to the point of persecuting front-line health professionals who spoke up.

We should blame the CCP for permitting Chinese citizens to continue travelling outside of China, knowing full well how infectious coronavirus is.

We should demand reparations from the CCP for making millions unemployed in many countries, and wrecking economies. If they won't play ball, start by recognising Taiwan.

 

[sherwood]

Just press the Red button Donald J, could be the best thing you ever did. Loonball

 

Edited May 5, 2020 by sherwood

[Relocated]

Dislike of Trump supersedes dislike of China on TVF commenters illogical logic. As enemy of enemy is friend. 

[stevenl]

10 minutes ago, Retarded said:

Dislike of Trump supersedes dislike of China on TVF commenters illogical logic. As enemy of enemy is friend. 

Again that nonsense. Please refer us to posts not critical of China.

[RoadWarrior371]

1 hour ago, OneMoreFarang said:

Do so many defend China?

Please compare the Chinese government with the US government. Who is more consistent? Who makes more sense? Who talks BS all the time?

Should we blame China if they can offer lots of products and services a lot cheaper than so called first world countries?

Should we blame China when other nation's leaders ignore news from China and think they are immune against Corona?

 

There was a time when lots of people looked up to the United states, their quality, their freedom, their justice, etc. But that is a long time ago. Now most people outside the USA only see a nation in decline and their elected leader is trying his very best to bring them down down down. Yeah, great job Donald - and all the people who still support him.

Easy, looks a lot like you are varnishing the Chinese Commies nutsacks, even if your real objective is some misguided jealousy of the US.  Pathetic.

 

 

13 minutes ago, Retarded said:

Dislike of Trump supersedes dislike of China on TVF commenters illogical logic. As enemy of enemy is friend. 

Stupid is as stupid does.

[scorecard]

1 hour ago, Sujo said:

No one forces any company to deal with china or open operations in china. So stop blaming china for that nonsense.

 

Now Mr President, how about focusing on the virus issue, that thing thats killing tens of thousands of your citizens. Stop complaining that gwb didnt tweet his support to you while you were being impeached.  Stop saying how happy you are that kim jong un is alive and well. Stop saying drugs cure it when it wont. Stop telling people to ignore your own lockdown rules. 

 

You are not a stable genius, listen to the experts you appointed to deal with this. Stop being an idiot.

And stop trying to put up the facade that you are more expert than dozens of world class global people who know 100 times more than you do, but some (in your administration) afraid to speak because they fear your unbalanced retribution.