By Dan Harris in 'China Law Blog'
I know many of our posts of late have been fairly negative on China, and I really wish this one were not, but I really have no choice but to "call 'em like I see 'em" We are constantly writing articles on what country is going to be the "next China" and I have mostly been talking up Vietnam as that choice. See, for instance, the following posts:
I had a revelation today. The United States is the Next China. How could I have missed it?
There are many articles out today on how manufacturing jumped unexpectedly in both the United States (and in England) and most attribute that to a rising economy. I agree, but I also think/know that at least some of that is due to American companies choosing to expand their manufacturing in the United States (as opposed to China) or simply shutting down their operations in China.
Here is what we have been working on JUST THIS YEAR:
I am not saying that every company is going to be closing down their China operations and going home, because that is certainly not going to be the case. Indeed, on the flip side, we are getting a ton of work from companies seeking to tap China's consumer and B2B market. We also are getting a steady flow of companies seeking to make low to mid range goods in China. Where I see the "return home" phenomenon most likely to occur is in difficult to manufacture goods where the U.S. company has existing U.S. operations so closing down China will not involve building a new factory anywhere else, but simply hiring back already-trained, already-skilled workers.
This is a new thing and so I am dying to know what you are seeing out there?
Dan Harris is founder of the Harris & Moure law firm, a boutique international law firm focusing on small and medium sized businesses that operate internationally. China is the fastest growing area for the firm. Dan writes ChinaLawBlog.com as a source of China legal and business information.