Key Takeaways
Fuyao Glass founder Cao Dewang issued a stark ultimatum regarding the company’s major US presence, stating he would rather shut down the factory than operate at a loss due to tariffs.
Fuyao Glass founder Cao Dewang, speaking at the company’s 2025 annual shareholder meeting, declared that the firm would shut down its US factory if tariff policies render it unprofitable. The statement from the head of the world's largest auto glass supplier injects significant uncertainty into its US operations, which hold assets totaling 8.74 billion Chinese yuan ($1.28 billion).
"How much tax you want to impose is your business," Cao said at the April 21 meeting. "If I don't make money, I will definitely not do it... if we encounter an unreasonable situation, the big deal is that I will shut down the (American) factory."
The ultimatum comes despite a strong performance from its US subsidiary, Fuyao Glass America Inc. The unit posted revenue of 7.92 billion yuan in 2025, a 25.1 percent year-over-year increase, and a net profit of 884 million yuan. The operation’s business profit margin stood at a healthy 13.27 percent last year.
Cao's comments create a material risk for investors, pitting the founder’s stringent commitment to profitability against the potential for a full asset write-down and the loss of a key market. The stance serves as a potential warning for other Chinese multinational companies navigating escalating US-China trade tensions and the prospect of new tariffs.
This is not the first time Fuyao has contended with US trade policy. The company is notably the first Chinese enterprise to sue the US Department of Commerce and win. After entering the US market in 1995, Fuyao faced an anti-dumping investigation in 2001.
In a legal battle that concluded in 2004, the company successfully argued against the claims, resulting in the US reducing its anti-dumping duty to just 0.13 percent, effectively a zero rate. The victory not only secured its position in the US but also helped pave the way for its expansion into European and other international markets.
Fuyao Group is the dominant global supplier of automotive glass, holding an estimated 34 percent of the world's market and approximately 68 percent of the market in China. Its US factory, located in Dayton, Ohio, is the world's largest single-plant automotive glass factory, representing a cornerstone of its international strategy.
The company's 2025 annual report showed total group revenue reached 45.79 billion yuan, with net profit hitting a record 9.31 billion yuan, underscoring the scale and financial health that stands behind Cao's assertive position on its foreign operations.
This article is for informational purposes only and does not constitute investment advice.
