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Reuters
US President Donald Trump wants to offer tax credits to entice US companies to relocate factories from China.
He has also threatened to strip government contracts of companies that continue to outsource work to China.
In a speech on Monday, Mr Trump promised to create 10 million jobs in 10 months and said “we will end our confidence in China.”
It marks its latest attack on China, following moves involving tech companies TikTok, WeChat and Huawei.
The announcement came as tensions between Washington and Beijing have escalated rapidly in recent months.
The Trump administration is now throwing its net outside the Chinese technology companies that it has accused of threatening the US national security.
“We will create tax credits for companies that bring jobs from China back to America,” Mr. Trump said. “We built the largest economy in the history of the world and now I have to do it again.”
The Chinese communications giant Huawei has been attacked several times by the US government and on Monday further restrictions were placed on the company to restrict the electrical components it can buy.
The Trump administration has also threatened to add more Chinese technology companies to its blacklist of companies banned in the US, in addition to TikTok and WeChat,
As the U.S. presidential election approaches in November, Mr. Trump has raised the ante in China’s goal, accusing his companies of stealing U.S. jobs and intellectual property.
In Monday’s speech, Mr. Trump added that “we will make our critical drugs and supplies right here in the United States.”
American Icons
Many well-known American products are made overseas for American consumers, a business strategy known as outsourcing.
America’s most valuable public company, Apple, uses a Taiwanese company called Foxconn to make the majority of its best-selling iPhones. Foxconn has factories in both China and Taiwan.
Other iconic American brands, including Nike, also have large manufacturing plants in China, as well as other parts of Asia.
Global markets have controlled their Chinese operations amid the coronavirus pandemic after temporary plant closures caused major breaches by suppliers.
China is often referred to as the ‘factory of the world’, but its share of global exports has been affected by the trade conflict with the US and the coronavirus pandemic.
