THE Novelodge compiled a compilation of U.S.-based companies in which key decisions are no longer made in America. There are plenty of companies that have already been essentially in foreign hands, yet we consider them American. There are also companies that are still accountable to owners in the United States, but hardly produce anything there anymore.
There are also many surprising players on the list, and it looks like many big brands have already been engulfed by the Chinese.
Founded in 1892, General Electric has been able to grow at an exponential rate for several decades. Today, it is a key player in many industries, from healthcare to aviation and the venture capital industry to lighting. Products are still labeled “Made in America,” but a small portion of GE, most notably the home appliance business, has been owned by a Chinese company called Haier since 2016, which was purchased for $ 5.4 billion. The company’s other businesses continue to manufacture products in the United States, but decisions about that division are made in China.
AMC has been providing unforgettable experiences for movie fans for about a century and has even earned the title of the world’s largest movie chain. Although the initials denote the term American Multi-Cinema, between 2012 and 2018, a Chinese company called Dalian Wanda Group was the majority owner of the cinema network. That state changed in 2018 to the extent that Silver Lake Partners also bought a $ 600 million stake in the company. However, the Chinese company Wanda Group is still making decisions about AMC.
Legendary Entertainment Group
After China’s Dalian Wanda Group bought AMC and achieved great success in the film industry, it decided to grab another film studio in 2016 as well. The Chinese company bought Legendary Entertainment Group for $ 3.5 billion. Dalian Wanda has decided not to change the normal operation. Thus, it is not at all surprising that since the acquisition, for example, films such as Jurassic World: Fallen Empire, Fire Ring: Rebellion, Kong: Skull Island, Skyscraper, Godzilla vs. Kong and the Dune!
People might think Budweiser couldn’t be more American anymore. This may have been true in the past, but the truth is that it is no longer a U.S.-based company in Missouri, and there is a sign “Made in America” on the side of the beer cans in vain. Budweiser was bought by Belgian brewer InBev for $ 52 billion. The European parent company hasn’t changed Budweiser’s recipe, so Americans say it tastes exactly like it used to.
Many people think of the United States when they think of Burger King. David Egerton and James McLamore opened their first fast food restaurant in Miami in 1954 under the name “Insta Burger King”. It was not even suspected at the time that it would later become an international brand. The company was sold a decade later, but the identity of the owners has changed several times since. The company is currently owned by a Canadian company called Restaurant Brands International. And Burger King continues to receive financial support from 3G Capital in New York.
Converse, best known for its high-heeled canvas shoes, was founded in 1908 in Boston. At the outbreak of World War II, the company had no choice but to stop traditional production, instead delivering shoes to the military during this period.
After the war ended, they continued where they had previously stopped. However, Converse went bankrupt in 2001 and was acquired by Nike sports shoe giant in 2003. The latter brand has a number of Chinese plants, which is why Converse shoes are currently manufactured in India, China, Indonesia and Vietnam.
As mentioned in the previous paragraph, Nike has many factories outside the United States. It is said that every fifth pair of Nike shoes is made in China! The sportswear company has contracts with 180 manufacturers that employ more than 210,000 people. With this, Vietnam is the second largest Nike shoe manufacturer in the world after Vietnam. The company also outsources production to Brazil, Japan, Sri Lanka and Indonesia. Truth be told, Nike tried to curb its exposure to Chinese manufacturing. In 2012, every third pair of shoes was manufactured in China by Nike, which has now been reduced to 20 percent.
Levi’s products came into vogue in the 1960s, when the consumer base began to grow from blue-collar workers to other sectors. The company went public in the early 1970s and has since expanded to 50 countries around the world. Almost all products are made in Italy, China, Japan and other countries outside the United States. However, the 501 Jeans is still made in a factory in North Carolina.
Motorola, best known for its technical products, started in Schaumburg, Illinois, long before we got to know the concept of mobile phones. Growing steadily after entering the market in 1928, Google eventually bought it, but in 2014 sold it to a Chinese company called Lenovo.
This did not prove to be a profitable move for Google, as it had bought the company for $ 12.9 billion two years earlier, but was only able to sell it for $ 2.9 billion. Even today, it’s a big riddle why Google got out of business with a $ 10 billion loss.
IBM (PC division)
At the time, the founding of IBM helped the United States stay at the forefront of technology. At the time, the company was not so much about computers as it was about business solutions. In 2004, China’s Lenovo acquired IBM’s PC division for $ 1.75 billion.
“As the founder of Lenovo, I am excited that this business is a breakthrough on the road to Lenovo becoming an international company,” said Chuanzhi Liu, then CEO of Lenovo. IBM CEO Sam Palmisano at the time said confidently: “Today’s announcement further strengthens IBM’s ability to seize the most lucrative opportunities in the rapidly changing information technology industry.”
(Cover image: Justin Sullivan / Getty Images via AFP)