Giant Declares 'Made in China' Era Over Citing Trump Tariffs
Giant has declared the "Made in China" era over in an interview with Bloomberg. The statement came after it moved US bound production back to Taiwan as a response to Trump's tariffs.
The 25% tariffs have apparently added $100 on average to the price of bicycles made in China and shipped to the US. Giant, the world's largest bike company, closed one plant in China at the end of 2018 and will be working double shifts on its Taiwan plant to keep up with US orders.
“When Trump announced the plan of 25% tariffs, we took it seriously,” Chairwoman Bonnie Tu said in the interview at Giant’s Taiwanese headquarters. “We started moving before he shut his mouth... Last year, I noticed that the era of Made In China and supplying globally is over.”
The switch to Taiwan comes with higher employee costs, less automation and no China-like economies of scale. Tu declined to say how much it would cost Giant but simply told Bloomberg that their “bottom line would be better without the U.S.-China trade war.”
However, Giant seems to be weathering the storm and its ability to swerve the tariffs has been noticed by investors and analysts as its stock has climbed more than 70% this year to the highest level since 2015, after four straight years of declines. On Monday alone, its shares soared 9.8%, their biggest gain ever, after the company said it expects a quarter of its revenue this year to come from e-bikes.
Giant still has five Chinese plants and Tu confirmed that if the tariffs are lifted, they would move production back right away. In the meantime, Giant is opening a plant in Hungary and is looking for a new South East Asian manufacturing location.
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Sorry your girl lost
Actually, I'll help. Google the words China along with "student," "protest," "and Tiananmen Square massacre"
A more current topic would be "Falun Gong Religion" with "crushed" and "state sponsored forced organ harvesting."
Happy reading!
For new projects, most Chinese companies were excluded from the bid process. We wound up with new suppliers in Mexico, Spain, and Malaysia. And that was just the projects I was involved in.
Rich countries taking advantage of poor countries has been happening for a very long time. Good on ya China for digging out of it somewhat. And complaining about Chinas paying shitty wages and having horrible working conditions is just bulls***. The reason that happened was because of richer countries. Demand drives supply. People buying elephant tusks causes poor people to kill elephants. People taking drugs in rich countries causes people in poor countries to produce them and kill each other for the right to. Trump is not the joke. The joke is all the people that follow his blatant bs.
@nocker:
"Giant should move manufacturing to the US."
1) A Taiwanese co. moving production to a country with some of the highest production costs in the world, is dividend suicide for Giant. The BoD would fire the CEO and CFO on the spot for bringing them that idea.
2) The US is a lucrative market (lots of cheap credit available, much to China's delight, who owns 1/3rd of US debt) but is dwarfed by Asian markets. Asian mkts are roughly 10x larger of the US mkt at 3B people, especially for bikes, which are relatively affordable.
3) What incentives does a Taiwanese co. have to move their MFT'ing to the US? Threat of organized labour driving manufacturing costs up even further? Higher transportation costs for raw materials from Asia and finished products back to Asia? Higher per unit production costs? Trump's 25% tariffs on foreign steel and aluminum that you, your fellow Americans pay, passed on to you from higher US manufacturing costs?
Proposing Giant can reasonably move production to the US is like proposing that we should all buy unicorns to ride to work. It isn't politics, it's basic economics and simple reality.
I don't even get how people can blame the president of another country for things that China has direct control over? Tariffs suck and I wish it had never happened but to say US is somehow taking advantage of poor, under privileged 3rd world CHINA is absurd to the 400th exponent.
Somewhere along the line you forgot what the word COMMUNIST means. China is one of the most economically powerful countries in the world because the government makes it that way. US IS the largest economy because the PEOPLE make it that way. The Chinese government sets their labor laws where they are so that they put a choke hold on the rest of the manufacturing world at the expense of their population. These heavily taxed industries see very little money come back to the people with low standards and low income. These are laws we have in the US to protect our people so they can complain about their exponentially higher income than the world average.
This is why US manufacturing is so much more expensive. Its not about quality, Its everything to do with taking better care of our workers, financially, environmentally, and otherwise. If you buy "US Made" products, outside of some very notable exceptions, you are guaranteed to be supporting a healthy, clean, well paid work environment. You most certainly leave that door open when buying from China.
If you support that sort of filth on this earth, you are far worse than any Trump supporter dreamed of being.
American Consumerism is fueled by a despotic government removing the autonomy of its workers to create a manufacturing environment so cheap the whole world cant help but buy in on it to make more profit.
1. The President, nor the House of Reps oR, nor the Senate, have the power to directly affect employment anywhere. 93% of Americans are employed by the private sector. As such, politicians at local, state and federal levels enact legislation to fiscally encourage US companies to hire additional workers ranging from corporate tax breaks to a range of other legislative tools. If the economy is soft, private companies don't hire or lay-off. It's the job of the government to stimulate the economy (e.g. lower the fed rate for cheaper borrowing), which provides a stimulus for business to invest, in theory.
www.quora.com/What-percentage-of-U-S-citizens-work-for-federal-state-or-city-government
2. “African-American, Hispanic-American and Asian-American unemployment have all reached their lowest levels ever recorded.”
The big picture is needed as a POTUS' economic policies can affect employment, but does not unilaterally control it. The unemployment rates for Black unemployment reached a record low, 5.9 %, in May 2018, but rose to 6.8 % in January 2019. The African-American rate is still nearly double the jobless rate for whites, at 3.5 %. The most dramatic drop in black unemployment came under President Barack Obama, when it fell from a recession high of 16.8 % in March 2010 to 7.8 % in January 2017. Trump did help black unemployment fall a net 1%.
www.apnews.com/e1afa3f19a054540a7c34ca193bdd9ae
3. Five Dem POTUS candidates back pot legalization.
www.cnbc.com/2019/04/18/2020-democratic-candidates-stand-together-on-marijuana-legalize-it.html
That ain't politics, those are facts. Use them and think critically. Your country's future depends on it.
People will be buying bikes they can't afford no matter how expensive they are, the companies are just taking advantage of those people's stupidity and as you pointed out China helps them exploit that even more. You would laugh at how many guys I see out there with $5k-6k bikes that can barely make it through some brake bumps.
People complain about the price of a $5k bike going up to $7k because of tariffs. If you can't afford to pay $7k you shouldn't be buying the $5k bike in the first place, it isn't financially smart.
The communist chinese are awful people, biggest mass murderers ever, but the government there is all part of a plan for complete control by those rich people you mentioned. And those rich people are ultimately also the ones running the advertisements and creating the tv shows and movies that push consumerism.
Denies global warming, denies the right to choose, systematically erodes public lands, pulls families apart at the boarder, is anti science, gun control, spies on its citizens, inflames social difference and increases the likelihood of global nuclear war which could ultimately lead to the destruction of the earth. Yeah Jacinda Ardern, she sux.
Huh?
How is a rich country's corporations knowingly getting their products made in a undeveloped nation for a ridiculous low price knowing the conditions of the factories not taking advantage??
I guess i need to change my understanding of the term "taking advantage" to a more Americanized version. I look forward to your enlightening me.
The last recession was caused by dumbasses using shitty loans to buy houses that they couldn't afford.
And yes 2k is barely anything in the US, it can easily be saved up over a few months if you work full time. A million dollars isn't even a lot of money in America if we take a broad view of things.
And if things are timed right, it could influence politics. Coincidentally, the 08 crash happened right before Obama's first election. We could see the same thing next year if certain people or companies want Trump out.
The corporate debt bubble won't be the starting point, but it will turn a small recession into a big one that lasts for a while. And when things do turn around it will make growth slower than it normally would be.
This is all my opinion, I'm not a financial advisor and I very well could be wrong, but this is my guess on what will happen.
www.pinkbike.com/news/gaint-usa-jump-on-direct-sales-bandwagon-2016.html
"Giant USA's general Manager John Thompson announced to dealers that it will sell bicycles direct to consumers who will collect their purchases at a Giant store."
Have they changed it?
I'm suprised after all this time you haven't used logic and tried for yourself.....
But one thing to ass Guerrilla Gravity makes a profit, so if the others bring themselves back slowly its a win for all.
You want a capitalist authoritarian government which has absolutely destroyed their country's inhabitants health making cheap disposable crap food, has wiped out native american culture, keeps Mexicans in camps, and is currently building polluting coal plants all over the world to control the world's factory production (and, let me add, fracking homesoil to extract oil). People like you are the ones who've enabled the globalist race to the bottom.
Sorry. I couldn't resist.
But none of this is true.. the government has nothing to do with it.
Idk where you got the Mexican camps thing from cause that’s not even funny, accurate, or relevant.
If your talking about founding the country with the Native American thing, literally every country on planet earth has their own history with that. It’s not ok, but it’s still not relevant.
The rest is a result of government NOT getting involved. Oil companies created fracking technology to create a new source of oil to bring down fuel prices, purchased the land and utilized their new tools.
Food has been turned into a manufacturing process (which is disgusting on every level) but again was done by individuals operating without government interference. If there wasn’t an open market for cheap food, it would be made.
That’s what people don’t understand about good ole ‘Murcia. 99% of these “ bad things” that happen here are due to individuals doing their own thing, outside of government intervention.
You are very right when you say there is lots information out there. Unfortunately though, its not in your favor.
I am clearly not the one who has made up my mind.
www.americanprogress.org/issues/green/news/2018/02/15/446678/trump-budget-full-giveaways-coal-oil-companies
Think of all those steaks we should have eaten, and all those long haul flights we should have taken!
Most humans live in the here and now. That’s why climate change will not be stopped as long as there are humans on the planet.
It seems there is a choice. Live somewhere clean and have a lot of the local population stuck in meaningless jobs, selling stuff that other people made. Or take back some of the pollution from Asia and have people working in jobs that actually create something meaningful and useful.
Whatever way you dress it up, there are going to be factories somewhere and if you buy the product of those factories you are in a way responsible for the pollution they emit. There is no moral high ground in that.
I totally support the repatriation of manufacture wherever it happens. I would much rather my kids work in a factory than a phone shop when they grow up. As long as the factory had appropriate health and safety procedures in place to protect them. I’m not saying I want them to work in a factory and I hope they don’t have to, but that would be preferable to them working in Starbucks or the Carphone Warehouse.
Think about that. There is a massive ocean between them and us & yet their toxic clouds of pollution in the air & the seas is so massive, it's making people sick on another continent.
Again, you seem capable of higher thought processes so I'm sure you've spoken to people who have been th China? I've spoken to 4 different friends who each visited for very different reasons & all said the same. That the pollution BLACKS OUT THE SUN!
There are by-products of manufacturing that people who care about the future are going to seek to control, find alternatives...or if the manufacturing is harmful, we can stop making. But if China is making the products, we just have to buy it and not think about the byproducts.
Just like plastics (which even now clothing manufacturers are working on) making their "recycled" clothing hae less waste come off them in the wash so we aren't dumping microscopic bits of plastic into the water with every single wash.
I like to think that we're also pulling money away from countries who want us to trade ourselves into poverty.
What I’m talking about is that people keep buying stuff they that’s made in factories. As you say, America is affected by Chinese pollution. So what’s the upside? At least if those factories were in America, Americans would have meaningful jobs and that’s good for society. Yes, the prices would be a bit higher but that’s it. I think a lot of people have this idea that of the factories are in China then the pollution stays there.
I’m not saying I like pollution. It’s one of the reasons I’m leaving this funny, funny little island for good next month. Pollution goes hand in hand with our lifestyle and culture unfortunately.
What I’m trying to say is, if we must keep buying stuff that’s made in factories, we should have some of those factories in our home countries. We’re going to live on a polluted planet either way and manufacturing holds the fabric of our society together better than retail does.
And yes, western standards and laws would hopefully help to bring pollution down a bit.
Also as a perk of my job, I got to see what our suppliers arrangement and I can assure you, US environmental laws around manufacturing are FAR more stringent than the global average unless said company voluntarily imposes such precautions on themselves. (Which I’m also thankful to say is starting to happen more)
People don't understand what is coming down the road if China becomes the worlds number 1 economy. They have zero respect for western values or human rights. The average Chinese person doesn't even know what you are talking about if you mention human rights. I would take the USA over China any day.
What I heard is that the cost of manufacture in China is now over 90% of what it is in the USA. Of course, there are other factors such as environmental pollution, subsidies etc that still make China very competitive, but certainly a lot of people are starting to open their eyes as to what china’s all about.
If you want to keep giving your money to the same c*nt, he’s sooner or later going to be a big rich c*nt. A big rich c*nt who drives a Mercedes S600 in blue flip flops, while chewing betelnut.
In my opinion, the trade war is about global hegemony. America wants to stay at the top of the tree, China wants to get to the top and the only way to get to the top is by knocking America off.
Now a lot of people are quick to point out that America is no saint. To be honest I have this argument with my dad every couple of months. True, America is no saint, but certainly if you’re from a western progressive democracy as most of us pinkbikers are then the USA leading the way is going to be massively preferable to the CCP leading the way. I mean it’s true that Americans have a habit of speaking too loudly in public and a lot of them are pretty brash at times. Some might say arrogant. I like most of the Americans I meet because even if they do speak too loudly in public, at least they line up and wait their turn, don’t spit on the floor in public, think that if you’ve got a black bmw it’s always your right of way, let their kids shit in the street, or piss in the aisle of international flights (I’m talking about on the floor here). They also get taught that there are two sides to every story, rather than just the one as they have been led to believe in China. Americans also have the freedom to say what they think although admittedly this is shrinking. They can choose their leader, and then say what they like about him. The law at least ostensibly applies to everyone equally. Agreed, this may not happen 100% in practice, but you can bet it’s a lot better in the USA than it is in China. America must be doing something right because it is the number one destination country for immigrants in the world whereas China is not. It’s in pretty much last place of all the countries not currently at war. Actually everyone who can get out of China is doing so. That’s why the locals in Melbourne, Sydney, Brisbane, Vancouver and San Francisco to name a few can’t afford houses in their home cities! Well, not the only reason but certainly a factor.
As with everything it’s not black and white, but I think everyone who talks shit about America is going to have a huge case of you don’t know what you’ve got till it’s gone in 30-50 years’ time if China gets its way. Well, Xi Jinping at least.
Good to know that an average frame costs $400
Lead paint and asbestos were commonly used in family house construction up to 1980. Leaded gasloine was used til 1995! Yeah, that was fantastic, good ol' times. The average lead level in blood of Americans was 3 times higher in the 80s than today, so great made us strong (and a bit dumb it turns out).
Need I remind you about bicycles in the 90s? I will, they sucked. They lasted approximately 1 ride before you broke something else.
I'm wondering if someday thanks the 3rd printing and carbon fiber technology the production won't move closer to the design office. That would speed up the developement of new models and save some transport time & costs.
Who makes Norco?
That's an indicator, if ever I saw one, there is no Hungarian plan to adopt the Euro any time soon.
For example, all of Giant’s aluminium is smelted and formed in China. Even for the high end frames that have a “Made in Taiwan” sticker.
I only found this out a few months ago, after living in Taiwan for ten years. I almost puked when I heard.
But picked up on the fact that the average cost of a bike shipped to Giant US is $500 (if a $100 increase is 25%). I know they sell a lot of low end stuff, but that's a surprising figure.
i also understand that the tire manufacturing world is the same?
Maybe Sick bikes?
The wilipedia page on it is pretty interesting. Basically the Taiwanese parent company is owned by this Taichung OG called King Liu. He started manufacturing for I think Schwann in the 70s. After a while he saw the market was there and thought f*ck it, we’re doing all the work and they’re making all the money, and so the Giant brand was launched.
Most of the bikes “Made in Taiwan” are actually fabricated in China from Chinese aluminium. Finishing, painting and assembling allows them to legally claim “Made in Taiwan”.
It is not uncommon for tubes to be formed and welded in China, frames sent to Taiwan for post machining, then sent to Indonesia for painting and assembly. It’s pretty confusing when you’re trying to decide what “Made in...” sticker is most apporopriate.
The iPhone is assembled in China using components from like, 44 countries!
Oh man , I’ve got $9000 to spend on a mtb , I’m not paying an extra $100 !
GT - we’re not paying the extra $100 !
Instead we’ll pack up and leave the country!
What a bunch of 5 year olds
congress are the people that really make law.
ah well, both sides are spending outta control so good luck to ur kids...
Sorry Giant. I know times are tough, but a lot of people are going to be put off(if not already) if Giant bikes are priced higher than boutique bikes.
Taiwan is a high-income country with a skilled and educated workforce. Its export-oriented industrial economy is the 21st-largest in the world, with sectors including steel, machinery, electronics and chemicals manufacturing. The state is ranked highly in terms of civil and political liberties education, health care and human development.
?
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....the hell????
And the reasons manufacturing is so cheap is because of lower salaries, level of life, poor labor laws etc... Environment is one of the last reasons, and to be honest, neither canada nor USA really give a damn about it.
Just look at what oil industry does to Alberta or Alaska...
In 1662, Koxinga, a loyalist of the Ming dynasty who had lost control of mainland China in 1644, defeated the Dutch and established a base of operations on the island. His forces were defeated by the Qing dynasty in 1683, and parts of Taiwan became increasingly integrated into the Qing empire. Following the First Sino-Japanese War in 1895, the Qing ceded the island, along with Penghu, to the Empire of Japan. Taiwan produced rice and sugar to be exported to the Empire of Japan, and also served as a base for the Japanese invasion of Southeast Asia and the Pacific during World War II. Japanese imperial education was implemented in Taiwan and many Taiwanese also fought for Japan during the war.
In 1945, following the end of World War II, the nationalist government of the Republic of China (ROC), led by the Kuomintang (KMT), took control of Taiwan. In 1949, after losing control of mainland China in the Chinese Civil War, the ROC government under the KMT withdrew to Taiwan and Chiang Kai-shek declared martial law. The KMT ruled Taiwan (along with the Islands of Kinmen, Wuqiu and the Matsu on the opposite side of the Taiwan Strait) as a single-party state for forty years, until democratic reforms in the 1980s, which led to the first-ever direct presidential election in 1996. During the post-war period, Taiwan experienced rapid industrialization and economic growth known as the "Taiwan Miracle", and was known as one of the "Four Asian Tigers".
Don't worry, we know discussing policy is a big no-no. We're not really expecting an answer that makes any sense.
Not like race face exports dontcha kno
You can thank Democrats for letting manufacturers flee overseas with the ridiculous regulations, yeah we don’t pollute as much... but China jacks the atmosphere up with 0 regulations!!! Long story short, TRUMP is putting America first! Love it or leave it, Trump will win again in 2020 #merica
It's ok to trust someone you shouldn't have, even when it means putting your country in the wrong hands. Everybody does mistakes.
But when you keep doing it with clear indications that it's a mistake, and that you keep repeating and repeating the same mistake over and over again, you're just stupid.
"There are studies that back it up". What a great argument.