Sponsored by

Chinese Factories Move Abroad; Shoppers Sour on Physical Stores By Liz Young

Chinese companies that have been shifting production overseas for years are speeding up their efforts to get ahead of new U.S. tariffs.

The WSJ's Hannah Miao reports that President Trump's return to the White House has added urgency for many Chinese manufacturers to open factories and find partners in other countries, especially in Southeast Asia .

Factories that decide to stay put are looking for ways to lower prices and keep their products attractive as a new 10% tariff on imports from China raises costs for U.S. buyers. Profit margins are already stretched thin in many industries in China, leaving limited room to trim prices.

Some manufacturers say China's advanced infrastructure and robust supply chains make it easier to do business there than in other countries. Even if they move some production to another country, many say the materials for their products will have to be sourced mainly from China.

And moving supply chains isn't easy. It takes significant time and money to scout new locations, build facilities, train workers, get to know local regulations and bring up production quality and speed.

CONTENT FROM: PENSKE Gain a Leg Up. Gain Ground with Penske.

Running a business can mean big responsibilities. So Penske takes truck rental uncertainty off your list. Whether you're scaling up, handling surges or simply need different size trucks at different times, Penske gives you the options you need to stay ahead of your competition.

Learn More

Supply Chain Strategies

Shoppers are having trouble finding what they want at physical stores. The WSJ's Suzanne Kapner reports that the growth of e-commerce over the past five years has made offerings in physical stores feel paltry by comparison.

Retailers typically only stock a small fraction of the goods available online at their bricks-and-mortar stores. The divide has only become more dramatic as merchants have expanded the breadth of products they sell online to compete with Amazon and as retailers have downsized the size of their stores.

Retailers can hold far more inventory at central distribution centers than at any one store. And figuring out how many size smalls of a navy blue sweater should go to store A versus store B is a lot harder than having all the inventory in one place.

Still, companies make more money when customers buy from physical stores because packing and shipping costs eat into online profits.

Beyond is cutting the number of items it stocks as fourth-quarter net revenue fell 21%. (Retail Dive) Quotable Number of the Day In Other News

Dockworkers voted to approve a new labor deal that secures a 62% pay increase over six years at ports from Maine to Texas. (WSJ)

U.S. consumer confidence registered the largest monthly decline in more than three years in February. (WSJ)

Wages in the eurozone rose at a slower pace during the three months through December. (WSJ)

Ukraine agreed to a mineral rights deal with the U.S. (WSJ)

Taiwan detained a cargo ship and its eight Chinese crew members after an undersea fiber-optic cable was severed. (WSJ)

Nippon Steel plans to discuss its proposed acquisition of U.S. Steel with government officials. (WSJ)

ANA Holdings plans to buy more than $14 billion of jets from Boeing, Airbus and Embraer. (WSJ)

Home Depot sales grew 14% in the latest quarter , beating analyst expectations. (WSJ)

Keurig Dr Pepper fourth-quarter sales climbed as the company sold more beverages at higher prices. (WSJ)

Unilever is unexpectedly replacing its chief executive. (WSJ)

Kitchen-equipment maker Middleby is spinning off its food processing business. (WSJ)

A. Duie Pyle agreed to acquire another two terminals from bankrupt trucker Yellow for $4.5 million. (Trucking Dive)

Deltamarin signed a contract with China Merchants Jinling Shipyard for the design of Wallenius Wilhelmsen's upsized Shaper Class vessels. $(AJOT.UK)$

A containership owned by Mediterranean Shipping remained stuck off the coast of Canada 10 days after it ran aground. (Lloyd's List)

The cruise-ship industry is embracing America's hottest port city : Galveston, Texas. (WSJ)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com].

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 26, 2025 07:03 ET (12:03 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.