U.S. economics chief says “pay the moving costs” of American companies leaving China

Larry Kudlow

Larry Kudlow

Call the moving company, and Washington’s picking up the tab.

The same day Japan announced that it would spend upwards of $2.2 billion to get its corporations out of China and either back home or spread throughout southeast Asia, White House National Economic Council Director Larry Kudlow said the U.S. should “pay the moving costs” of every American company that wants out of China.

“I would say, 100 percent immediate expensing across the board for plant, equipment, intellectual property, structures, renovations… In other words, if we had 100 percent immediate expensing, we would literally — literally pay the moving costs of American companies,” Kudlow said on the FOX Business Network’s America Works Together Town Hall which aired on Thursday.

The Japanese government announced that it would provide direct loans 220 billion yen ($2 billion) for companies shifting production back to Japan and 23.5 billion yen for those seeking to move production to other countries, according to details of the plan posted online.

Kudlow told one of the people in attendance, who had asked about America’s over-reliance on China, what could be done to change the commercial relationship post-pandemic.

Kudlow said that one way was to provide them with moving cost payments, though he did not get into specifics.

Source: Forbes – Kudlow: ‘Pay The Moving Costs’ Of American Companies Leaving China



Categories: Trade & Investment

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