Founder of 'American Factory' firm warns of US exit amid China trade friction
Translated from English, summarized and contextualized by DistantNews.
TLDR
- Cao Dewang, founder of Fuyao Glass and the subject of 'American Factory,' warned that his company might exit the U.S. if trade friction and tariffs lead to significant losses.
- He stated the company would not pursue loss-making ventures and would shut down U.S. plants if faced with 'unreasonable situations.'
- Fuyao Glass, a major automotive glass producer, employs thousands in the U.S. and has a history of navigating U.S.-China trade relations, including a landmark case exempting it from anti-dumping duties.
Cao Dewang, the billionaire founder of Fuyao Glass, a company familiar to Americans through the Oscar-winning documentary 'American Factory,' has issued a stark warning: his business may pull out of the United States. This threat comes amid escalating trade tensions and tariffs between the U.S. and China, which Cao argues are creating an untenable business environment.
Speaking at the company's annual general meeting, Cao, who is approaching his 80th birthday, made it clear that Fuyao Glass will not tolerate "loss-making ventures." He directly addressed the imposition of duties, stating, "How much in duties you want to impose is your business." However, he added a firm caveat: "If we encounter unreasonable situations, we’ll simply shut down the [US] factories." This statement underscores the precarious balance of international trade and the significant impact geopolitical decisions can have on global businesses.
Fuyao Glass has a substantial footprint in the U.S., with its most prominent facility being the Moraine, Ohio plant – a former General Motors factory acquired in 2014. The 'American Factory' film chronicled the site's revitalization and Cao's controversial anti-union campaign. Today, the company employs thousands across Ohio, Illinois, and South Carolina, supplying major automakers like General Motors, Ford, and BMW. This deep integration into the American economy makes Cao's threat particularly significant.
This is not the first time Fuyao has navigated complex U.S.-China trade dynamics. The company notably holds the distinction of being the first Chinese firm to successfully sue the U.S. Department of Commerce, securing an exemption from anti-dumping duties in 2004. Cao's latest remarks, widely reported in Chinese media, arrive over a year after the U.S. initiated its "Liberation Day" tariffs, sparking a trade war that saw duties peak significantly before a period of de-escalation. From a Chinese business perspective, Cao's comments reflect a growing assertiveness and a willingness to protect national economic interests, even if it means challenging established trade partners and potentially withdrawing investment.
How much in duties you want to impose is your business. If we encounter unreasonable situations, we’ll simply shut down the [US] factories.
DistantNews Editorial
Originally published by South China Morning Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
More Stories
From Our Blog
Countries Without a Free Press: What You Need to Know
What Press Freedom Means for the News You Read
What Gets Lost (and Found) When News Is Translated
The Critical Role of Diaspora Media in Global News
What Travellers Should Know About Countries with Restricted Press
