Is China Trying to Take Over the US Labor Market?

Audio version available here (1 min. 40 sec.)

Since the Obama era, relations with the US and China have been dicey. Globalization is particularly an issue between the two nations, and tensions have only risen after the pandemic. Several Chinese companies are coming to the US due to the potential of its large market. However, there has been major pushback from lawmakers to allow these companies in due to their security concerns.

In 2022, a $2.36 billion factory project by Gotion High-Tech, a Chinese lithium battery company, was welcomed by Michigan Governor Gretchen Whitmer. The project promised to bring thousands of jobs to the state. However, due to the company’s Chinese origin, opposition to this plan has been led by lawmakers and locals where the factory is to be built in the Grand Rapids. Although the job creation potential was well received, concerns about national security and US economics have casted doubt on the whole operation. Some fear that these Chinese companies “could spy for Beijing and work to extend China’s influence in the US heartland”. US policymakers believe that there are “national security risks” associated with these companies as they are under the ruling Chinese Communist party.

Amidst the fears of heavy Chinese influence in the US market, the US economy is currently in a risky state. Following years of inflation and high interest rates, the economy is at the brink of a possible recession, especially with recent data showing that the job market has slowed. While concerns over Chinese companies gaining larger control over the US economy are valid, the fact that these companies are bringing many jobs to Americans could actually bring some economic relief.

Understanding the current state of the market both domestically and internationally is vital for running your business. The relations between the US and China could especially be a huge factor. A great way to understand how situations like these could affect your business is by staying up to date with the latest business news by following the XQ CPA’s blog.

Phone: 832-295-3353

Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php

Want the latest and greatest tax tips and business news? Stay up to date with our social media!

Our blog: https://www.xqcpahouston.com/blog

Our channel: https://youtube.com/@XQCPA

Facebook: https://www.facebook.com/XQCPA/

Instagram: https://www.instagram.com/tax_xqcpa/

Twitter: https://twitter.com/xqcpa

LinkedIn: https://www.linkedin.com/company/xq-cpa/

TikTok: https://www.tiktok.com/@xq.cpa

Sources:

https://apnews.com/article/us-china-business-economy-competition-93b62d84ad7c92ad4d2efc957fb45804