We'll chalk this one up in the “unintended consequences” category. This shows how tough it can be for governments to restrict trade.
The article says, in part: “All the Chinese are rushing back, building up their production facilities and starting up new factories,” says Ron Zeidel, 60, executive director of Magic Suit, the Mongolian subsidiary of a U.S. company. “It's going to be a haven for companies coming here from China to get around this quota.”
To escape new limits on shipments to the USA of cotton shirts, trousers and underwear made in China, Chinese companies are shifting production to plants in countries not affected by the restrictions. That has meant a sudden surge of activity in neighboring Mongolia, one of the world's most remote and least likely commercial hot spots.
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Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent book is the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus. His latest book has been released as an "in-progress" book, titled Measures of Success.