Chinese Companies Are Moving to Texas, Nevada To Avoid Trump’s Tariffs

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, forcingcompanies 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.

These are not American companies coming back, but they are Chinese companies coming in to the United States for the first time. For years, they undercut American workers by exploiting loopholes and subsidies, leading to an influx of cheap goods and synthetic goods. Now they are scrambling to stay afloat.

“The goal is to survive — and stay competitive,” said Leo Li, who just opened a sensor module assembly plant in Nevada, Business Standard reported. “Our costs will rise, but not as much as they would with the tariffs.”

Electronics and novelty goods are not the only industries being impacted. Trump administration officials have emphasized domestic mining and production of critical materials to break the United States’ dependence on foreign nations, particularly in sectors like energy and defense.

“It’s not just ‘drill, baby, drill.’ It’s mine, baby, mine,” Secretary of the Interior Doug Burgum said earlier this year. “If we don’t do that as a country, we will literally be at the mercy of others controlling our supply chains.”

Now, Chinese petrochemical firms are starting to plant roots in the United States. Ye Yingmin, the founder of a chemical consulting firm in Beijing, says the United States has become a hotbed of interest for Chinese investment.

“We’re seeing Chinese firms preparing to invest heavily in places like Texas,” Ye told the SCMP.

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.

Since Chinese Communist Party (CCP) General Secretary Xi Jinping assumed office in 2012, tens of thousands of Chinese intelligence officers have covertly infiltrated the United States across numerous different industries. The Federal Bureau of Investigation (FBI) opened multiple new China espionage investigations every day, former FBI director Christopher Wray noted in 2022.