Chinese Enterprise Invests $3 Billion in US Manufacturing, Reshoring Production from China.

A Chinese-owned enterprise, GE Appliances, plans to invest $3 billion over five years in US manufacturing, including reshoring some production from China. The move aims to capitalize on savings from reduced tariffs on finished products, faster response times, lower shipping costs, and reduced inventory needs. Despite labor shortages and higher labor costs, the company believes reshoring can be done if production costs are low enough.

GE Appliances, a Chinese-owned enterprise, has announced a significant investment of over $3 billion over the next five years in its U.S. manufacturing operations. This move is aimed at expanding its air conditioning and water heating portfolio, increasing production output, and modernizing its 11 U.S. manufacturing plants. The investment will also create 1,000 new jobs across five states, including Kentucky, Georgia, Alabama, Tennessee, and South Carolina [1].

The investment is part of a broader strategy to capitalize on savings from reduced tariffs on finished products, faster response times, lower shipping costs, and reduced inventory needs. Despite labor shortages and higher labor costs in the U.S., GE Appliances believes that the potential savings from reshoring can make the move financially viable [2].

This announcement comes on the heels of similar investments by other global firms in the U.S. in response to the Trump administration's tariff policies, which aimed to boost domestic manufacturing. Carrier Global, a peer of GE Appliances, has also planned to invest $1 billion over five years in the U.S. [1].

GE Appliances' plans include shifting production of refrigerators, gas ranges, and water heaters from China and Mexico to its U.S. plants. The company aims to modernize its facilities with new automation and capital equipment, thereby increasing efficiency and production capacity [3].

The investment is the second-largest in the company's history and is expected to add more than 1,000 jobs while ramping up domestic production. CEO Kevin Nolan emphasized the company's long-term strategy of manufacturing close to its customers, leveraging lean manufacturing, upskilling its workforce, and automation [4].

By the time the plan is complete, GE Appliances will have invested a total of $6.5 billion across its U.S. manufacturing plants and distribution network since it was acquired by Haier from General Electric in 2016 [1].

References:
[1] Reuters. (2025, July 2). GE Appliances plans to invest over $3 billion in U.S. operations. Retrieved from https://finance.yahoo.com/news/ge-appliances-invest-over-3-110435095.html
[2] Economic Times. (2025, July 2). GE Appliances to invest $3 billion in U.S. manufacturing push. Retrieved from https://m.economictimes.com/news/international/business/ge-appliances-to-invest-3-b-in-us-manufacturing-push/articleshow/123288585.cms
[3] Ainvest. (2025, July 2). Ford electric vehicles revolutionize manufacturing with $2 billion Louisville plant investment. Retrieved from https://www.ainvest.com/news/ford-electric-vehicles-revolutionize-manufacturing-2-billion-louisville-plant-investment-2508/
[4] Star Tribune. (2025, July 2). GE Appliances shifts more production to U.S. as part of a $3 billion investment. Retrieved from https://www.startribune.com/ge-appliances-shifts-more-production-to-us-as-part-of-a-3-billion-investment/601454267