By Paul Page
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President Donald Trump's formal withdrawal from the 12-nation
Pacific trade agreement leaves a trade vacuum in a fast-growing
region that China appears anxious to fill. Mr. Trump's action was
largely symbolic, the WSJ's William Mauldin reports, since it has
been clear since the November election the Trans-Pacific
Partnership had no path toward approval. Still, as one expert said,
it puts the world on notice that all of America's traditional
economic and political alliances are open to renegotiation. With
free-trade backers troubled at TPP's demise, including logistics
operators that had hoped the pact would fuel dramatic new growth in
the movement of goods, China is looking to step into the void.
Officials in Beijing say China is ready "to play the role of
leader" in regional trade dealings, the WSJ's John Chin reports.
That may mean new deals with Vietnam, Japan and other countries
that would help China have a bigger role in shifting manufacturing
trends in Asia, and keep industrial business aligned with the
country's growing role as a shipping power.
Mr. Trump is offering U.S. manufacturers incentives to shift
their supply chains back to the country, along with stark warnings
of punitive action if they move overseas. The president told top
executives from a dozen manufacturers at a White House session he
will impose "a very major border tax" on imported goods if the
companies move operations abroad, the WSJ's Carol E. Lee and Damian
Paletta report. Mr. Trump has talked about such a tax for several
weeks, aiming his warnings mostly at auto manufacturers, but hasn't
offered details on how such a program would work. Retailers and
other businesses that depend on imports are raising alarms about
higher costs they would face if production moves to the U.S., but
Mr. Trump is also suggesting a broader rewrite of industrial policy
could include carrots as well as sticks. He asked the business
leaders, including the CEOs of Ford Motor Co., Under Armour Inc.,
Whirlpool Corp. and Dow Chemical Co., to report back with specific
ideas to boost U.S. manufacturing -- ideas that surely will make it
worth it for them to redraw their global supply chains.
The world's biggest outsourced electronics manufacturer is
already looking for some extra motivation to bring factory work to
the U.S. Foxconn Technology Group says it is considering investing
$7 billion to build a flat-panel screen factory in the U.S., and
the WSJ's Eva Dou reports discussions are already underway with
officials in Pennsylvania and other states. Terry Gou, founder of
the Taiwan-based company formally known as Hon Hai Precision
Industry Co., outlined the plan that he says could create 30,000 to
50,000 jobs making flat-panel screens for Sharp. Corp., the
Japanese electronics manufacturer Foxconn acquired last year.
Foxconn's potential investment carries big significance because of
the new Trump administration's pledge to revive U.S. manufacturing.
More practically, Foxconn's scale could draw other components
suppliers into its orbit, bolstering the company's new distribution
channels.
E-COMMERCE
Online retailer Warby Parker says it has a clear vision of
distribution to consumers, and it includes brick-and-mortar stores.
The eyeglasses seller is opening 25 retail locations this year,
expanding its stakes in the physical world even as it builds its
e-commerce presence, the WSJ's Khadeeja Safdar reports. The
seven-year-old company, which opened its first store in 2013, will
have 70 stores by the end of this year. The strategy highlights a
fracturing of traditional retail markets that Warby Parker
co-founder Neil Blumenthal says is more complicated than simply
having e-commerce specialists stealing sales from traditional
stores. The company is among many brands moving away from bigger
department stores and other middlemen, he says, and looking to
reach consumers directly and offer more tailored goods and sales
strategies. One advantage for Warby Parker is that it leverages
data on its online customers to determine store locations, which
also helps keep inventory more closely attuned to sales.
QUOTABLE
IN OTHER NEWS
The U.S. dollar is losing its value against major world
currencies amid growing concerns over potential U.S. protectionism.
(WSJ)
The lending arm of Ford Motor Co. invested in San Francisco
startup AutoFi Inc., a step toward offering online auto sales.
(WSJ)
Tesla Motors Inc. has extended the battery range for a new
version of its Model S sedan to 335 miles on a charge. (WSJ)
Australia says it will give greater scrutiny to overseas deals,
signaling resistance to Chinese investment in sensitive assets.
(WSJ)
The Singapore Exchange is setting up an index to track the price
of liquefied natural gas in the Middle East and India. (WSJ)
Halliburton Co. is seeking price increases from oil-field
equipment customers, saying the discounting during the industry
downturn is over. (WSJ)
FedEx Corp. named David Bronczek president and chief operating
officer and promoted David Cunningham to replace Bronczek as
president and chief executive of FedEx Express. (Memphis Commercial
Appeal)
Amazon.com Inc. is putting its first distribution center in
Colorado, at an industrial park east of Denver. (Denver Post)
Volkswagen AG subsidiary Scania and Toyota are starting a
three-year test of truck platooning operations in Singapore.
(Automotive Logistics)
The Bangladesh government is cracking down on workers protesting
abuses and poor working conditions at garment factories in Dhaka. (
New York Times)
A delegation of Cuban business leaders began a two-week U.S.
visit to seek trade deals and foreign investment. (Prensa
Latina)
Sierra Nevada Brewing Co. will recall its pale ales and IPAs in
36 states after detecting a packaging flaw that could cause glass
to break off into the bottle. (Associated Press)
The Royal Bank of Scotland has sold $600 million in shipping
loans as it moves to get out of the maritime sector. (Seatrade
Maritime)
Yang Ming Marine Transport expects the Taiwanese government to
take a greater stake as part of the container line's
recapitalization plan. (The Loadstar)
L Brands Inc., owners of Victoria's Secret, said it would
investigate its supply chain for human rights abuses and
deforestation impact. (Reuters)
Safe Fleet acquired fellow refrigerated transport equipment
maker Randall Manufacturing LLC. (Modern Materials Handling)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Subscribe to this email newsletter by clicking here:
http://on.wsj.com/Logisticsnewsletter .
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
January 24, 2017 06:56 ET (11:56 GMT)
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