Thread: 6 Fortune 500 Companies including Disney Move Shanghai

Friday, July 16, 2010

Six Fortune 500 Companies including Vale, Walt Disney and Kraft, Move Regional HQ to Shanghai http://english.cntv.cn/program/bizasia/ ... 1006.shtml

When you have a tax policy that begs corporations to move workers and profits overseas, this is what you should expect: 24 multinationals move HQ to Shanghai

24 multinational companies, have decided to move their regional headquarters to Shanghai, including 6 Fortune 500 companies such as Vale, Walt Disney and Kraft Foods.

This will push the total number of companies with regional headquarters in Shanghai to nearly 300. Nearly 500 have regional research and development centers there.

Shanghai has been China's top destination, for multinationals. Even during the world economic slump, the city's foreign direct investment still increased. Data shows Shanghai's foreign direct investment has already surpassed more than 5 billion US dollars in the first half of this year.

US Tax policy allows deferral of taxes on corporate profits held overseas. Tax policy, in conjunction with global wage arbitrage, practically begs corporations to move jobs and profits overseas.

Meanwhile, small businesses struggling in the US face higher taxes and increased medical expenses thanks to the Obama administration. It's a lose-lose situation for small businesses vs. larger multinationals.

The worst part of this sorry situation is small businesses are the real economic driver for jobs.

For further discussion of small businesses, job creation, and our inept policies, please see Bleak Outlook for Small Businesses and Job Creation; Where Obama Went Wrong, and What to do About It. http://globaleconomicanalysis.blogspot. ... s-and.html

Addendum

A couple people pointed out the word "Regional" Offices did not move out of the US.

True enough.

However, the likelihood those regional offices are bigger at the expense of US is high, but admittedly there is no way of knowing. However the underlying message on tax policy is valid regardless.

Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot. ... uding.html

after that hit piece they did on Amnesty for Illegal Aliens .. whodathunkit

Disney can move their whole operation to China for all I care. I plan on NEVER watching, buying, visiting anything related to Disney ever again...

This has been going on since CAFTA, and became a flood with NAFTA.

A milestone was when Haliburton moved to Dubai.

Even Budweiser and Hershey's chocolate is no longer American owned.

Originally Posted by Tbow009

Disney can move their whole operation to China for all I care. I plan on NEVER watching, buying, visiting anything related to Disney ever again...

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Just curios. Was it a movie or a single even that finally made you decide this?

Ah! More to add to my boycott list. A few more and I won't even have to work because there won't be a company left that I'll do business with! I love gardening and cleaning my guns.