<p><a href="https://www.forbes.com/sites/kenrapoza/2020/04/07/new-data-shows-us-companies-are-definitely-leaving-china/#7bc9873840fe">Forbes magazine</a> reports that United States manufacturers are, in fact, pulling their operations from China amid concerns that the country lied about the origins of the novel coronavirus, COVID-19, and hid key information from the U.S. and other countries about the true impact of the virus, including the country&#8217;s death count.</p>
<p>An initial exodus of manufacturing, the report says, began because of an impending trade war, and because of a lack of cooperation by Chinese authorities in resolving what the White House labeled a &#8220;trade imbalance.&#8221; Experts now expect the exodus to continue because of the pandemic.</p>
<p>&#8220;Global manufacturing consulting firm Kearney released its seventh annual Reshoring Index on Tuesday, showing what it called a &#8216;dramatic reversal&#8217; of a five-year trend as domestic U.S. manufacturing in 2019 commanded a significantly greater share versus 14 Asian exporters tracked in the study,&#8221; Forbes reported Saturday. &#8220;Manufacturing imports from China were the hardest hit.&#8221;</p>
<p>Companies have been pulling back because of increased tariffs on Chinese-made goods, preferring instead to make those same products in countries with a better current trade relationship with the Trump administration, particularly countries in North America, many of whom just inked a new trade agreement with the White House. Those countries in southeast Asia with similar manufacturing capacity to China but friendlier governments, like Vietnam, have also benefitted. Vietnam absorbed 46% of the manufacturing moved from China.</p>
<p>The cost of manufacturing in China has risen significantly in the last year, and with relations now further souring, costs will only go up.</p>
<p>&#8220;Three decades ago, U.S. producers began manufacturing and sourcing in China for one reason: costs. The trade war brought a second dimension more fully into the equation―risk―as tariffs and the threat of disrupted China imports prompted companies to weigh surety of supply more fully alongside costs. COVID-19 brings a third dimension more fully into the mix­, and arguably to the fore: resilience―the ability to foresee and adapt to unforeseen systemic shocks,&#8221; one expert told the financial news magazine.</p>
<p>&#8220;The full extent of the societal and economic trauma the coronavirus pandemic may cause is unknown still, the Kearney report’s authors wrote. But whatever the outcome, a return to status quo China trade pre-pandemic is unlikely,&#8221; the outlet says, adding thatfor manufacturers, concerned now about the next pandemic, diversifying their options makes business sense.</p>
<p>Following American manufacturing is American government. Several Members of Congress announced last week that they plan to author a bill requiring critical items for American health, like personal protective equipment, and non-prescription medications like ibuprofen, be made domestically to prevent a shortage in the event of another pandemic.</p>
<p>Sen. Josh Hawley (R-MO) has been leading that charge, telling Fox News earlier this month that Congress and the American government must &#8220;rethink&#8221; their entire relationship with the Asian powerhouse nation.</p>
<p>&#8220;These same people, the Washington elites, the Wall Street types, and the media establishment have all pushed for closer ties with China for decades,&#8221; <a href="https://www.realclearpolitics.com/video/2020/04/01/sen_hawley_its_time_to_fundamentally_rethink_our_relationship_with_china.html">Hawley told Fox News</a>. &#8220;They are the same people who have been telling us this will be great for America and the world if we integrate our economy with China&#8217;s. It will be great if we have a global economy where we send jobs overseas. It won&#8217;t really matter. As it turns out they&#8217;ve been wrong about all of that. They&#8217;ve been wrong about this whole bargain.&#8221;</p>
<p>&#8220;It&#8217;s been terrible for America and now we are living with the results,&#8221; Hawley added. &#8220;So I think this is &#8212; we are finally waking up to it, or at least the D.C. elite are finally waking up to the wages of the bargain that they struck and it&#8217;s time to fundamentally rethink our relationship with China and the world. It&#8217;s time to start putting American workers at the front and not kowtowing any longer to the Chinese government.&#8221;</p>

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Data Suggests American Companies ARE Pulling Manufacturing From China