Tuesday, September 29, 2020
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Trump attempts to lure US firms back from China

United States President Donald Trump has promised to create 10 million jobs in 10 months, in part by setting up tax credits for American companies that relocate manufacturing facilities to the US from China.

Trump, who is trying to build support ahead of the November 3 election, told supporters during a visit to Mankato, Minnesota, his administration would also strip federal contracts from companies that outsourced work to China.

"We will create tax credits for companies that bring jobs from China back to America," Trump said during an hour-long speech. He also predicted the US economy would bounce back strongly from the economic shock caused by the coronavirus pandemic - as long as he was re-elected.

"What we're doing together is nothing short of an economic miracle and now we're doing it again," Trump told cheering supporters. "We built the greatest economy in the history of the world and now I have to do it again."

Trump highlighted rising retail sales in recent months. But data released last week showed US retail sales increased less than expected in July as consumers cut back on purchases of motor vehicles. They could slow further in the months ahead amid spiralling new coronavirus infections and a cut in unemployment benefits.

The Trump administration is taking action on multiple fronts to rebalance US economic ties with China, including through restrictions on Chinese firms like technology giant Huawei, bans on popular apps including TikTok and WeChat, and a slew of executive orders aimed at ensuring domestic production of key products.

Ending the US's reliance on China

The administration is using "Buy America" requirements and incentives to persuade US firms to bolster domestic supply chains, especially for critical supplies, such as drugs and medical equipment.

Trump slashed the US corporate tax rate in 2017 to 21 percent from 35 percent. 

The Republican president, who is trailing Democrat Joe Biden in opinion polls, said his tax cuts and other measures were strengthening the US economy despite the pandemic.

He said the administration planned further tax cuts, and reductions in regulations to encourage more investment at home, but gave no specific details.

"We will end our reliance on China, we will make our critical drugs and supplies right here in the United States," he said, in an apparent reference to an executive order signed last month to boost production of medicines and medical equipment.

SOURCE: Reuters news agency

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