Trade War: Export-dependent South Carolina finds itself caught between its No 1 sales market and White House policies
- China has been the state’s largest export market for manufactured goods since 2013, displacing Germany and Canada
- Companies are taking longer to decide whether to locate plants, expand production as a result of the trade war, state and local officials say
Nestled in the foothills of the Blue Ridge Mountains between Atlanta and Charlotte, Greenville County was the heart of textile country in South Carolina for much of the 20th century.
Many of the spinning rooms in the area are now gone, replaced by advanced manufacturing ranging from power-generating turbines for General Electric to sport utility vehicles (SUVs) for German carmaker BMW in neighbouring Spartanburg County.
The transformation – and health – of the local economy is a testament to the efforts state and local officials have made in the past quarter-century to attract international investment and diversify South Carolina’s manufacturing base. Unemployment is at a record low and per capita income has steadily risen statewide since the global financial crisis a decade ago.
Not all is rosy, however. South Carolina, in the southeastern US, has found itself caught in the cross hairs of the trade war that has raged between the country and China for the past 18 months.
The dispute has cast a pall over recruitment efforts, with international companies hesitant to make long-term investments, as uncertainty over the trade war outcome lingers, state and local officials said. It also has pressured the trading relationship with South Carolina’s largest export market: China.
As the two countries prepare to sign a “phase one” agreement on Wednesday, South Carolina officials are hopeful the truce will give companies more certainty about the future and help prolong what has been a period of unprecedented growth in the state.
