Amid ongoing tensions in the trade war, companies in the United States began moving to China.
In the last quarter, the US jewelry Tiffany & Co. He moved some of his most expensive products to his stores in Beijing and Shanghai, where he sold limited quantities of special diamond pendants. It is also updating its three main stores in China, including Hong Kong.
For its part, Ford Motor Co. said it plans to build most of the vehicles it sells in China under that brand locally , in order to avoid tariffs. The company expects the Asian giant to become the largest market for its Lincoln in the coming years.
Meanwhile, Tesla Inc. plans to start its plant in Shanghai by the end of the year. Depending on the deadline, the automaker would avoid the last round of Chinese tariffs that will take effect in December.
It should be remembered that last week the president of the United States, Donald Trump, responded to China’s tariff reprisals and ordered US companies to “start looking for an alternative to China immediately.”
China is the country where future growth is found for many global companies that face saturated markets locally. Therefore, despite the current economic slowdown, the Asian giant is the ideal place to invest in the long term.
Such is the case of Starbucks Corp., which is growing in China while in the United States it is contracting.
In addition, China is the largest aircraft market in the world, where Boeing Co. opened its first 737 finishing plant late last year amid growing commercial tensions.
Only this week, the first point of sale in China of Costco Wholesale Corp. was so overwhelmed on its opening day, with customers willing to fight for discounted products and wait hours to pay for purchases, that the Shanghai store had to suspend Your operations temporarily.
The Red Lobster seafood chain, which currently has only two establishments in China, also sees its future in the Asian giant.
“It is very likely that China is our largest international market by a fairly wide margin over time,” Red Lobster chief executive Kim Lopdrup said in an interview last week.