The real reason overseas manufacturing is coming to America
If I didn’t get elected, he definitely would not be spending $10 billion, President Donald trump said Wednesday, referring to Terry Gou, chairman of Taiwanese Apple (AAPL) supplier Foxconn.
That evening, Trump announced Foxconn’s plans to build a plant in Wisconsin that would produce flat-screen display panels for TVs and other products. The plant would create 3,000 jobs and represent a $10 billion investment, according to White House officials.
While the investment echoed Trump’s promise to bring jobs back to the US, the president can hardly take all the credit for Foxconn’s big move. The relocation of China’s manufacturing industry has been going on for years, as the long-time cost advantage of manufacturing in China has slowly declined.
Lower input costs, strong demand ...