China’s exporters to step up offshoring to beat Donald Trump’s tariffs

Chinese manufacturers say they will accelerate the efforts of other countries to bypass the US tariffs, after President Donald Traman announced an attack on new trade, against the world’s second major economy.

Beijing thinks how to answer Trump Decision on Saturday For Chinese exporters, an additional 10% tariff is forced by the options that range from counterbalances to supervisions and depreciation of currency.

The preliminary response of the Chinese government is combined, combined Trump ceasefire with Canadian and Mexico In Monday and in the coming days, his plans to call Chinese President Si Jin Insing have hopes Beijing’s hopes that may be a place of talks.

Tariff and southern Chinese companies, which are in cardiacs, included some manufacture in the Middle East, crossing our customers.

“Many Chinese exporters have already lost part of the US market for the last few years, when the tariffs started,” said China’s Gift Box Broel Lou, citing a part of Trump as part of the trading war in its first term. during office.

Lu said that BrothersBox plans to move some of its production to the United Arab Emirates to target the US market this year. “We hope we will win with them,” he said about his American customers.

TrumpetThe threat of an additional 10% of the price of a tariff for Chinese products, which he attributed Beijing’s supposed inaction to the United States, was raised during his election campaign.

But Chinese companies have already diversified their trade in recent years. The direct share of the US import country has fallen at eight percentage points in 2017-2023 according to the Rhodium Group report last year.

Some Chinese production has moved to third countries, from where it is exported to the United States. For example, the share of importing from Vietnam and Mexico has increased significantly in the same period.

Lynn song, the main economist of Greater China, which states that the tariff will have a limited impact, as “as a result of the first trading war, it exports very sensitive US prices.”

He said that with Trump’s targeting, Chinese companies are likely to be a larger trade in Southeast Asia and Latin America.

More complex Chinese export, such as machine parts, will also be difficult to replace, that is, US buyers must absorb prices.

Tony Cao, in South Nanhai Yingya, China, South Guangdong, said about about 5% of its sales in the United States, said Trump tariffs were more difficult to hit American importers than Chinese manufacturers.

“They must buy Chinese products,” Kaso said. “Their shopping costs will increase, so their sales prices will increase accordingly.”

Some analysts say the speed of the promised implementation of the tariff caused a challenge for Beijing and questioned how much Chinese manufacturing capabilities can be easily moved abroad.

“Everyone who could [move supply chains] There is already, “said Cameron Johnson, a partner in Tidalwave solutions. Countries such as VietnamWhere Chinese companies have made production lines, they can also hit tariffs.

“Everyone who has a significant commercial surplus with the United States is going to get a certain way of tariff,” said Johnson.

Amy Lin, a sales manager in Teshuailong, Chinese Shoe, says that foreign investment demands more capital and labor than its company could be collected. Instead, Teshuailong would look for new customers in markets such as the Middle East. “Life goes on,” said Lee.

Beijing criticized new Trump tariffs and threatened Empty a lawsuit The World Trade Organization, but still has to announce revenge.

Analysts pointed out options such as rare export controls needed for energy industry or anti-monopoly research such as one recently announced Against the US Chip Nvidia.

Tidalwave Johnson mentioned that other measures may include further control over the export of emissions and electrical vehicles.

Most of the analysts believe that Washington will use more tariffs, in particular since the investigation, Trump has ordered the 2019 trade deal with Beijing during his first management.

Before importing Chinese agricultural products, the import of US agricultural products increased, the purchases of American products decreased in 2020 and 2021, as the global supply chain epidemic was spoiled.

At the same time, some analysts believe that China’s best strategy is to seriously cut its imports to US purposes such as planes, agricultural products and medical devices.

This can damage the most popular groups or industry groups such as farmers and oil and gas, while they are waiting to negotiate new transactions.

“We do not report the possibility of reaching mutual tariffs [from China]But we think that they should be silent, “Chris Bedor said, the director of Chinese Chinese research to avoid removing the president from Canada and Mexico and, probably from the EU.

“Trump is obviously open to a deal at some point,” Beddore added, pointing to the item defermentation On TIKTOK, Chinese-controlled short video platform and call with XI.

Economists note that Trump’s policy can ultimately strengthen China’s economy, forcing Beijing to focus on heavy structural reforms such as infrastructure and industry.

In general, China has issued a note Almost $ 1tn trade surplus Last year, as the country relied on the internal internal economy to compensate for the external demand and the slowdown of the deep property.

“The first commercial war is irony,” said the song of Ing, it was that it strengthened China’s “technological self-sufficiency”.

Others have warned, but that China’s economy is now in a very weak position. In 2018, the country was able to use the devaluation of the exchange rate, the deviation of the trade and the reduction of the margins of exporters to alleviate the tariffs, said analysts at Barclays.

“All the above-mentioned channels have decreased significantly, offering to have a much greater impact on China’s trade this time,” they said.

Imagination of Alan Smith and Haohsiang Ko