US President Donald Trump is making every effort to push national companies to move production away from China. The head of the White House has even decided to create tax credits for those businesses that bring jobs from China back to America.
According to experts, the main reason for such a generous step is the fact that Donald Trump is seeking to build support ahead of the presidential election to be held in November this year. On Monday, August 17, the American leader promised to create 10 million jobs in 10 months for those US firms that would shift operations out of China to the United States. They would be provided with tax breaks, the head of the state stressed. At the same time, companies that outsourced work in China would be stripped of federal contracts.
The US leader said that these measures could help the national economy bounce back from the shock caused by the coronavirus pandemic. Donald Trump drew attention to increased retail sales in recent months. However, the latest data showed a decline in US retail sales in July 2020 as many consumers cut back on spending. Moreover, experts do not exclude a further reduction in purchasing power amid a growing number of COVID-19 cases and a cut in unemployment benefit checks.
The Trump administration is trying to use all measures to tackle the economic fallout sparked by the coronavirus disease. It is striving to rebalance US economic ties with China. At the same time, the White House aims to boost national production by placing restrictions on Chinese firms like Huawei and imposing bans on Chinese mobile apps like TikTok and WeChat.
The main task of the Trump administration is to persuade US manufacturers to bolster domestic supply chains. This particularly applies to such vital goods as drugs and medical equipment. The head of the United States notes that his decision on tax cuts for American businesses that have moved production out of China contributes to the country's economic upturn. This measure helps to overcome the crisis and attract more capital to the United States, Donald Trump is confident.
