The 2015 China Tax Story unfolds......
http://www.scmp.com/news/china/economy/article/2064276/seagates-move-close-factory-china-adds-fears-suffocating-tax
5 replies (most recent on top)
Layoff and stock goes up to record.. wheeeeee
It's a question of where Seagate's commercial customers are located. If they're currently doing business in Asia, Seagate wouldn't be the ones paying the tariff. I don't Seagate makes that much selling directly to US consumers
How about trump administration taxes 45 percent on hdd imported from Thailand and China?
So the government in Suzhou tried to squeeze Seagate for higher taxes so they close the plant there. What will Seagate do when Wuxi uses the same shakedown formula? Can Seagate build everything it needs in Thailand? Given the high debt load that Seagate currently has, as well as the long term decline of HDDs, I can't imagine that they can raise sufficient funds to put a plant in Shakopee. That would require them to cut the dividend, and that would destroy executive compensation.
Put production in Minnesota. Shokopee. Trump will cut US tax to 15 percent this year. I makes financial sense now unless you hate America and like paying more to China and other murdering dictatorships. Don't be a stupid globalist holdout Seagate.