Coronavirus: American Factory boss says pandemic will change China’s role in global supply chain
- Cao Dewang, the Chinese owner of the Fuyao Glass America factory, says countries will cut their reliance on Chinese manufacturing after the coronavirus
- Global industrial chain will change, but rich countries will struggle to rebuild manufacturing at home after offshoring production for decades, tycoon says
Cao Dewang, whose US automotive glass plant was featured in the award-winning documentary American Factory, says China’s role in the global supply chain could be weakened after the coronavirus, but it will be an uphill battle for rich economies to rebuild manufacturing at home.
Cao, the self-made billionaire founder of Fuyao Glass Industry, said in an interview with The Beijing News that China must get ready for changes to the global industrial system.
“After the epidemic, the global industrial chain will reduce its dependence on China,” the 74-year-old entrepreneur told the newspaper on Tuesday, adding China must stay alert to the trend of multinationals shifting production home or to third-party countries.
If they want to rebuild manufacturing and an independent industrial system, it will be very difficult
The Chinese tycoon’s warning also comes as the US flirts with the idea of paying American businesses to move factories home. Japan has already budgeted funds to help their companies relocate from China.