NEWS ALERT: Chinese manufacturers flee Asia, set up shop in red state

May 5, 2025

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From the Daily Caller: A growing wave of Chinese manufacturers are packing up and moving to the United States under the weight of President Donald Trump’s tariffs on Chinese goods.

Trump’s tariffs have made it too expensive for many Chinese firms to export goods to the United States, forcing companies that once thrived on cheap labor in Asia to set up shop in places like Dallas, Houston, and Reno, according to the South China Morning Post (SCMP). For some, it’s the only way to stay in business.

“The United States accounts for nearly 95% of our orders. It’s not a market we can afford to lose,” Ryan Zhou, who runs a novelty gift business in eastern China, said, as reported by the SCMP. Zhou is opening a new facility in Dallas next month as a result of a 90% tariff on Chinese shipments to the United States.

Zhu Ning, a consultant who advises Chinese firms on overseas expansion, says he’s handled more than 100 relocation inquiries in the last four months alone, a level of interest that was unheard of before Trump’s tariffs kicked in, per the SCMP.

The report notes that it’s not only electronics and novelty goods, but Chinese petrochemical firms are starting to plant roots in the United States, and many Chinese firms are investing “heavily” in states like Texas.

“The influx of Chinese manufacturing is not without risks. For example, the potential mass-relocation of Chinese workers to the United States raises significant espionage concerns,” the Daily Caller warned.

The report also states that “tens of thousands of Chinese intelligence officers have covertly infiltrated the United States across numerous different industries” since Xi Jinping assumed office in 2012.