Harold Hutchison / April 14, 2020

U.S. Businesses Walking Away From China

American companies are finally making decisions that we think were long overdue.

With growing evidence that the Chinese Communist Party not only covered up the initial outbreak of the China Virus but is still engaging in disinformation, many conservatives want the ChiComs to pay a price. There is good news on that front: It’s already happening.

It looks like companies across the world are carrying out an economic and geopolitical #WalkAway movement from China. They have already looked at the vulnerabilities our dependence on China is causing and taking mitigating steps. Japan is shelling out $2 billion to encourage companies to leave China and head back.

That’s a smart investment, and one Japan will quickly recoup. If companies move to Japan and set up factories, the workers hired there will become taxpayers as opposed to receiving welfare checks. That is not just financial savings for Japan, it also is far less destructive over the long term to the people themselves. Larry Kudlow, director of the United States National Economic Council, makes a similar argument.

This is the type of thing that should be encouraged, especially when it comes to taking the cost of COVID-19 recovery out of the economic hide of the Butchers of Beijing. Again, this is one place where the money will be recouped, and for the same reasons as Japan. In addition, this could very well help bring back many of the smaller cities and towns devastated by the loss of manufacturing over recent decades.

One way to fuel a manufacturing boom would be a military buildup. One very likely consequence of companies walking away from China would be efforts by the ChiComs to retaliate. A strong military would help deter them from that path.

Think they won’t go after American companies? Look what they did to the National Basketball Association over one tweet from one front-office official of one team. Note how the NBA fell in line.

The fact is, the truth is out, and China’s continued cover-up — and demands for companies to go along — is going to have companies looking for an exit. Eventually, the temptations of the huge market offered by China and its cheap manufacturing won’t make up for the bad press that China will cause.

Dealing with the Chinese Communist Party comes with its own set of expenses. Temporarily, it can be ignored. While President Donald Trump is right about how Communist China has been ripping us off, it’s beyond that now. The moral compromises are too great. Sooner or later, companies will want a way out before they are in too deep. It’s best to make #WalkAway also apply to Communist China.

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