BEIJING, China (Global Times) — US President Donald Trump has ordered US companies to “immediately start looking for an alternative to China,” but it will have serious consequences if the US firms obey.
China is now the biggest market for some US-based enterprises, such as US automaker General Motors (GM). The automaker’s China sales came to 3.65 million cars in 2018, exceeding its total sales in the US market, where GM delivered nearly 3 million vehicles.
Some statistics have shown that China’s car market is even bigger than those of the US and Japan combined. GM is already facing weak sales in the US. The automaker will suffer a fatal blow if it loses the Chinese market.
GM is a big player in the US auto industry, an important component of the US economy that is particularly prominent in some Midwestern and Southern states.
According to statista.com, motor vehicle and parts dealers in the US had about 2 million employees as of March 2019. If GM’s profits fall or it loses money, the whole US auto industry will be affected, the country’s auto supply chain will shrink and mass unemployment will result.
In China, the vehicle industry is a fully competitive market. If GM withdraws from China, homegrown brands and automakers from countries outside the US will fill the gap in auto sales. As long as China has the world’s largest vehicle market, there will be no shortage of auto-related investment. China has the initiative in this game.
There’s not much chance that GM will obey Trump’s outburst. The automaker needs its factories to be close to its customers to survive in a fiercely competitive market.
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