Coronavirus: American Factory boss says pandemic will change China’s role in global supply chain

Apr 19, 2020 by

Cao Dewang, the self-made billionaire featured in the documentary ‘American Factory’, says countries will reduce their reliance on Chinese manufacturing after the coronavirus.

  • Cao Dewang, the Chinese owner of the Fuyao Glass America factory, says countries will cut their reliance on Chinese manufacturing after the coronavirus
  • Global industrial chain will change, but rich countries will struggle to rebuild manufacturing at home after offshoring production for decades, tycoon says (The Japanese learned this the hard way after they bombed Pearl Harbor)
The production line of Cao Dewang’s Fuyao Glass America factory in Ohio. Photo: Xinhua
The production line of Cao Dewang’s Fuyao Glass America factory in Ohio. Photo: Xinhua

Cao Dewang, whose US automotive glass plant was featured in the award-winning documentary American Factory, says China’s role in the global supply chain could be weakened after the coronavirus, but it will be an uphill battle for rich economies to rebuild manufacturing at home.

Cao, the self-made billionaire founder of Fuyao Glass Industry, said in an interview with The Beijing News that China must get ready for changes to the global industrial system.

“After the epidemic, the global industrial chain will reduce its dependence on China,” the 74-year-old entrepreneur told the newspaper on Tuesday, adding China must stay alert to the trend of multinationals shifting production home or to third-party countries.

His remarks come as major economies reassess their manufacturing capacity, after the coronavirus outbreak severely disrupted

global supply chains

and ratcheted up concerns about decoupling between China and the United States, who have been locked in a bruising trade war.

If they want to rebuild manufacturing and an independent industrial system, it will be very difficult Cao Dewang

The Chinese tycoon’s warning also comes as the US flirts with the idea of paying American businesses to move factories home. Japan has already budgeted funds to help their companies relocate from China.

Source: Coronavirus: American Factory boss says pandemic will change China’s role in global supply chain | South China Morning Post

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.