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Trump's anti-China rhetoric threatens world economy

15 0 0
11.09.2019
By Mahmood Elahi

On Aug. 23, U.S. President Donald Trump sounded like a despot when he tweeted: "Our great American companies are hereby ordered to immediately start looking for an alternative to China." He must have been insane to think that he has such an authority to order private companies to follow his commands.

But GM, America's biggest carmaker, was not insane to move some of its production to China. It sold 3.6 million vehicles in China last year, a third more than it sold in the United States. China is the world's largest auto market and GM made a sound business decision by moving a large part of its production there.

GM did not comment directly on Trump's tweet. "GM's China operations are not a threat to U.S. jobs," the company said in a fact sheet, noting that its joint ventures in China have sent $16 billion in equity incomes to GM America since 2010 and that it has invested $23 billion in U.S. operations since 2009.

Trump's frustration is evident because he cannot impose tariffs on GM's cars made in China for the Chinese market. So GM can easily defy Trump.

Trump may be reminded that China saved the U.S. and the world during the Great Recession in the wake of the mortgage crisis. During the........

© The Korea Times