Is it possible, hypothetically, that a corporation like Google or Apple will take and completely move from the US to Europe or China (or Russia)? How will the US react to this?

Is it possible, hypothetically, that a corporation like Google or Apple will take and completely move from the US to Europe or China (or Russia)? How will the US react to this?

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answers (2)

Answer 1
July, 2021

I'll add a couple of remarks to the previous answer.

First, large IT companies (Apple, in particular) are already partially doing their business in Europe, and more specifically in Ireland. Why exactly in Ireland - there is very favorable tax legislation. But recently, more and more factors indicate that the shop will soon be closed - the Irish government has long been talking that the tax system will change, plus the EU, of which Ireland is a member, at the level of directives and other actions, may complicate the life of such companies. Other European countries are quite taxing in terms of taxes and are similarly subject to EU directives. Among other things, the labor legislation of European countries has a very negative impact on business.

As for China and Russia, let's say the risks are very high in the political sense. I am generally silent about Russia, but in terms of China, it is very profitable to keep factories there because of cheap labor and liberal labor legislation in relation to companies. But it is precisely doing business there that is difficult - China, despite all efforts, is still very corrupt. As Lee Kuan Yew writes in particular, in China, at the level of traditions, the requirement to have connections and "give in to the paw" is fixed. High levels of corruption have never been a good business environment. Plus, there are certain risks associated with the political structure of China. For the past 25 years, China has pursued a policy of attracting business, but nevertheless remains a communist country politically. Where is the guarantee that a new Mao will not come to replace Xi Jinping, who will again nationalize all business? The forecast is rather unrealistic, but still there is such a possibility. Indeed, in the USSR, the NEP also developed, when small and medium-sized businesses were given a certain freedom. And then Stalin came.

Finally, there is another important criterion - Americans are always very glad to migrants who come legally and bring their brains with them. In fact, the US has a number of programs to attract such migrants. If a person has special characteristics that the company needs, then he is immediately given a residence permit and a high salary. There are no such programs either in Europe, much less in China, where internal migration is very limited. Plus, I'm sorry, China is very beautiful in the picture, but behind those skyscrapers that we are used to seeing on the banks of the river in Shanghai, terrible poverty hides. You can go to China, but it's still not very good to live there.

In general, I did a lot of running over the tops. Read Lee Kuan Yew, he writes very well about China, and about the United States, and about Europe (though you will hardly find anything about Russia there).

Answer 2
July, 2021

For example, IBM and Motorola corporations are slowly transferring their businesses to China, transferring parts of it to the Chinese state-owned company Lenovo. Therefore, in relation to Apple, this, in theory, is also possible. As far as Google is concerned, it’s unlikely, this firm is too closely tied to the US military-industrial complex.

The US government must approve every such deal, so working with the government is a significant part of the problem.

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