The end for many multinationals’ decade-stretched operation in the US and China , as a result of the trade war between these two giants. Therefore FEG also moves to Korea due to trade wars
Stalemate broken and hammers thrown
September already saw a “No” to the elongated standoff between China and US, with the latter imposing a 10% tariff-up on the former’s $300bn (£248.7bn) worth of goods. China retaliated by a slap-back of an undisclosed tariff on a US’s export list.
Follow suits did a vast series of US’s crucial goods, soy bean, crude oil included and all. The US, on the other hand, has also taken counter-measures targeting its imported steel and aluminum,by succeeding Trump’s renowned tweet: “Trade wars are good, and easy to win”.
Manufacturers in both countries laid on the the first and foremost consequences. Naturally, trade wars bring recession and cost up. Many great producers have chosen both China and US as home, which provided their low labor costs, favorable protection or tax incentives. Some 40% of U.S. companies are relocating at least some of their supply out of China, according to a 2019 survey of AmCham ShangHai. Meanwhile, more than 13% of US- based companies have filed to cut ties with their Chinese counterparts. While jobs are unprecedentedly flowing out of China, they are not in anyway flocking into the US. Other Asia countries, namely Vietnam, Taiwan, Korea Or Thailand witness shift tilted the towardly to themself. The Huizhou-based electronics maker TCL and the Zhejiang-based yarn producer Zhejiang Hailide New Material are named among those considering moving their factories to Vietnam.
FEG moves to Korea
Whoever stays have to face two most irritating matters: unstable business-political environment and expense surge. ThereFore, it is truly challenging for manufacturers who wishes to maintain both their cost structure and also product quality. While the latter is out of question, the former is also indispensable to keep FEG products at its currently affordable price range.
For FEG, product quality and affordability have always been prone to priority, and the apparent call is to move. Korea has been chosen, as it is a market with stable labor cost and well-known cosmetics expertise. On a side note, FEG has already maintained years- long relationship with various partners in Korea. These are strong and reliable suppliers of disparate ingredients in FEG products. The move to Korea has recently been officially announced by FEG spokesperson.