Countries Across Asia Reaping the Benefits of Chinese Tariffs

U.S. tariffs imposed on China are having an impact across Asia, creating the most significant shift in cross border supply chains since 2001, the year that China joined the World Trade Organization.  Companies who had been doing business in China have been investigating alternatives and working to rebuild supply chains in other countries.  As many have found, once new arrangements have been made, changing course seems unlikely.

Shifting supply chains, done now out of fear may result in long term alterations.  Supply chain businesses are dealing not only with the fear of increasing tariffs but also that emerging economies have limited capacity, leading to service on a “first come, first serve” basis.  Emerging economies often have not established streamlined practices for dealing with governmental red tape, hiring skilled workers and for dealing with infrastructure that is not as well developed as that of China.

Reuters reported after conducting interviews with a small number of executives indicated frenetic activity across Asia in the past few months.  Flush with activity, South Korea, Vietnam, Cambodia and Thailand are benefitting from U.S. tariffs on Chinese goods.

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GM CEO Going to Capitol Hill over Plant Closures

General Motors CEO Mary Barra is scheduled to meet with lawmakers on Capitol Hill next week to discuss GM’s decision to idle production at five North American manufacturing plants.  The move will result in the reduction of 15,000 jobs.  This effort represents the largest restructuring of the company since its bankruptcy approximately ten years ago.

Lawmakers from Ohio and Michigan as well as senior members of Congress plan to meet with Barra and have been criticizing GM on a bipartisan basis.  New incoming members of Congress will also hear from Mary Barra at a forum at Harvard University next week.

GM plans to stop production in 2019 in plants near Youngstown Ohio, Detroit Michigan and Toronto Canada.  In addition several GM models will no longer be built.  This includes the Chevrolet Cruze, Cadillac CT6, Buick LaCrosse and Chevrolet Volt hybrid.  General Motors will also close the Warren transmission plan near Detroit as well as a plant which manufactures drivetrains and electric motors near Baltimore Maryland.

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New China-Europe Road Service Launches

A new initiative spearheaded by CEVA Logistics Greater China, the IRU and CEVA partners Alblas and Jet-rail provides a 10-15 day lead time, 50% faster than rail between China and Europe. This first successful trip aligned with the recent implications that support China’s Belt and Road Initiative.

The new system has been demonstrated to be secure and highly competitive in terms of cost and time savings.