Kenneth Rapoza, Coalition for a Prosperous America Industry Analyst, appeared on the America’s Work Force Union Podcast and talked about his latest article, “These Ten U.S. Companies Are Overexposed To China.”
Rapoza explained that his article looks at a top-10 list created by business intelligence consultancy Strategy Risks. He discussed the 10 U.S. companies most dependent on Chinese partners (state-owned companies) and suppliers, and the risks they face.
He explained that many members of Congress are worried about China and its influence on America. Rapoza said the 10 companies on the list have armies of lobbyists who will push members of Congress not to disrupt their businesses. This has led these companies and their Chinese partners to find loopholes in the system.
Rapoza explained how Ford, which topped the list, is attempting to evade tariffs. If its automotive parts or automobiles were manufactured in China, Ford would face a 27.5 percent tariff on Chinese autos and/or automotive parts. To get around the tariff, Chinese automotive suppliers are moving their facilities to Mexico. Under the United States-Mexico-Canada Agreement, the parts or automobiles manufactured in Mexico will only be subject to a 2.5 percent tariff.
For more on the top 10 U.S. companies who are overexposed to China, listen to the show above.