When one factory in one of these cities design a recent product, others nearby can quickly copy it or create their own, slightly different version. There is even a Chinese word for this kind of assholes: Shanzhai. Creating such a densely concentrated and quickly iterative ecosystem, such as this, required years of concentrated effort. “All this requires significant elasticity of the supply chain. I don’t think that something of it is made of one day-it images long-term cooperation between technical employees at different levels,” says Zhang.
The factories will not appear overnight
Many owners of American companies told Wired that in the past they studied production in the country, they encountered a wide range of challenges, such as higher costs, problems with obtaining raw materials, no available labor and regulatory restrictions.
Logan says that once he “went through the whole idea” to set up his own production line in the US, but he learned that it costs about 8 to $ 10 million to enhance the factory, including the cost of machines, creating forms and building a sterilization department. China is also the only country that produces automatic machines that he would need, which are still subject to Trump’s tariffs, if it was to try on land now.
Kim Vaccarella, founder and general director of the Bogg bag company, produces products from EVA, a rubber host of oil, also used for flipflops and yoga mat. Vaccarella claims that it is possible to produce EVA products in Vietnam, but when she studied acquisition, she discovered that many factories were owned by Chinese and employed Chinese engineers. “China has mastered Eva. For 20 years they have been making shoes in Eva, so it was really our first choice,” says Vaccarella.
If Bogg tried to transfer his production to the USA, Vaccarella says that he thinks that she would also have to hire Chinese talent to ensure the correct establishment of production lines. But he is worried that it would be hard, especially considering the current Trump administration policy to reduce immigration. “Is everything happening to our borders, or will it be difficult to get a visa for Chinese counterparts and be able to help us build this business?” asks.
Another challenge is that the supply chain for many products is already fully globalized, with different steps spread between different regions, in which everyone has their own unique comparative advantages. Take, for example, a litter for a battery that can first be extracted in Chile or Australia, and then sent to China to sophistication, and then sent to Japan or Korea to be packed, and then finally sent to Europe or the USA to be placed in the car.
“Transferring this type of supply chain to the US would essentially mean that American factories have to win in every node, not only the final product. And I think this is a real challenge,” says Hugh Grant-Chapman, an associated strategic and international studies employee, studying trade and politics in the context of American relations-china.
Still in the suspension
Because Trump’s tariff policy apparently changes almost every week, company owners do not know what the status of their companies will be tomorrow. For now, some have stopped placing orders for products and supplies, while others are closing, at least temporarily.
Walton, a seller of spy equipment, says that he does not order in China at present, but some of his colleagues have containers with products in transit to the USA and with anxiety they check every day what the recent tariff rate on them will be. He also heard that some friends prevent employees to prepare for potential economic difficulties.
“Ultimately, companies want things to be at the right price and do not want to lose customers or employees,” says Charlotte Palemino, co -founder of the Skincare Dieux brand, who noisy about the effects of the tariff in social media. “These tariffs make that they make them choose us between our employees or our clients. Either way, it is harmful to the economy.”