‘China exit’ limited to some American sectors — and not for home

Even for companies moving out of China, “rising labor costs are most usually the trigger,” according to Goldman’s research — a trend long predating the trade war.

Although China is no longer as competitive as many other emerging economies for labor-intensive industries, its overall advantage in manufacturing remains intact, according to Goldman.

The common perception is that “the huge domestic market, complete industrial supply chains, and good infrastructure are most attractive to foreign manufacturing investments,” the report said, echoing Musk’s sentiments.

“When asked about top locations for moving out of mainland China, Vietnam and India are the most mentioned destinations,” according to the investment bank.

American companies’ reluctance to reshore shows how Trump’s aggressive stance on trade with China has done little to fulfill his pledge to bring manufacturing jobs back to the U.S.