Chinese manufacturers say they will accelerate efforts to transfer production to other countries to circumvent the American definitions, after President Donald Trump announced a new attack against the second largest economy in the world.
Beijing thinks about how to take revenge on Trump Saturday's decision To impose an additional 10 percent tariff on Chinese exporters, with options ranging from anti -export controls and low currency value.
The relatively silent initial response from the Chinese government, along with Trump's truce with Canada and Mexico On Monday and planning an invitation with Chinese President Xi Jinping in the coming days, Amal in Beijing was fueled that there is room for negotiation.
However, with an effective tariff on Tuesday, companies in southern Hartlands in China said that their strategies included some production to sites including the Middle East, pass the cost to customers in the United States and search for alternative markets.
“Many Chinese exporters, especially in the consumer products market, have lost part of their American market over the past few years after the outbreaks of the definitions,” said Michael Lu, President of BrothersBox in China, referring to Levies. Trump imposed as part of a commercial war during his first term.
Lu B The Bn said, she said she planned to transfer a portion of its production to the United Arab Emirates this year to target the American market. “We hope to enhance them,” he said of his agents in the United States.
TrumpAn additional 10 percent threat was directed to Chinese goods – which were attributed to the alleged inaction of Beijing on fentanel exports to the United States – during his campaign.
But Chinese companies have already diversified their trade in recent years. The direct share of US imports from the United States decreased eight percentage points between 2017 and 2023, according to a report issued by the Rodium Group last year.
Some Chinese production moved to the third countries, where it is exported to the United States. For example, the US share of Vietnam and Mexico dramatically increased during the same period.
Lynn Song, Chinese chief economist in Ing, said the tariff will have a limited impact because “a lot of price sensitive exports to the United States have already been re -directed as a result of the first trade war.”
He said that with Trump targeting Mexico, Chinese companies may turn more trade towards Southeast Asia and Latin America.
It will also be difficult to replace the most advanced Chinese exports, such as the machine parts, which means that American buyers will have to absorb prices in prices.
Cao of Foshan Nanhai Yingya Hardware Products, a company in the southern Chinese province of Guangdong, which makes about 5 percent of its sales in the United States, said Trump's tariff will strike American importers more than Chinese producers.
“They need to purchase Chinese products,” said Sawo. “Their purchase costs will increase and therefore their sales prices will increase in return.”
Some analysts said that the speed of implementing the promised tariff is a challenge for Beijing, and they wondered about the ability to manufacture the tray that can be easily transferred abroad.
“Anyone who can (transfer supply chains) already have,” said Cameron Johnson, a partner at Consultance Tidalwave Solutions. Countries like VietnamHe said that where Chinese companies have created production lines, they could develop definitions.
Johnson said: “Anyone who has a major trade surplus with the United States will get a form of customs tariffs,” Johnson said.
Amy Lynn, sales manager at the Chinese shoe manufacturer Teshuaailg, said that investing abroad requires more capital and workforce more than its company can mobilize. Instead, Teshuailg will be looking for new customers in markets like the Middle East. “Life continues,” Lynn said.
Beijing criticized the new definitions of Trump and threatened litigate To the World Trade Organization, but it has not yet announced revenge.
Analysts have pointed to options such as export controls on rare land – which are necessary for the new energy industry – or anti -relapse investigations such as one Recently Against the United States, Nafidia's chip.
Johnson of Tidalwave said that other measures can include more controls for drones and electric vehicle parts to the United States, Johnson of Tidalwave said.
Most analysts believe that Washington will impose more customs tariffs, especially after the completion of the investigation that Trump requested in the 2019 commercial deal with Beijing during his first administration.
While the Chinese imports of American agricultural products increased slightly after that deal, its purchases of American manufactured goods decreased in 2020 and 2021, when the epidemic caused global supply chains.
Meanwhile, some analysts believe that the best strategy in China is to cut its imports of American products calmly, such as aircraft, agricultural products and medical devices.
These electoral districts of strong Republican politicians or industry groups, such as farmers and the oil and gas sector, may harm an opportunity to negotiate a new deal.
“We are not limited to the possibility of a mutual tariff (from China), but we believe it will be done quietly,” said Chinese, Chinese Deputy Director of Research, to avoid the president's attention away from Canada. Mexico, and perhaps the European Union.
“It is clear that Trump is still open to a deal at some point,” Bidour added, pointing to him Postponement In Tiktok, the Chinese -controlled Video platform, and last month's call with XI.
Economists said that Trump's policies could eventually enhance the Chinese economy by forcing Beijing to focus on difficult structural reforms, such as directing more resources towards captivity rather than infrastructure and industry.
China has reported a record in general Trade surplus is about $ 1 million Last year, when the country relied on external demand to compensate the weak local economy and slow the deep property sector.
“It was the first trade war paradox,” said Song from Eng.
However, others warned that the Chinese economy was in a much weaker position now. In 2018, the country managed to use low exchange rates, trade trade and reduce exporters ’profit margins to reduce definitions, analysts in Barclays said.
They said: “The channels above have shrunk significantly, indicating a much greater impact on China's trade this time.”
Data is visualized by Alan Smith and Hohisiang Ko
