With the help of the Chinese government's support measures, Chinese companies should bear short -term pain.But in the long run, the threat caused by the increase in tariffs is true.
When the US President Donald Bull; Donald Trump began to impose tariffs on China, dozens of American companies and industry representatives were exempted to protect their business and criticized the Trump administration's trade policy.
When Trump imposed a 10%tariffs of about $ 200 billion in about half of the total amount of commodities in China, a 10%tariff, some industries in China, the world's second largest economy, were exempted, but seafood and home appliances wereDozens of other industries have been impacted by tariffs.
Trump threatened that if China and the United States cannot reach a trade agreement, he will increase the tariff increase rate to 25%in 2019.
Experts said that with the help of the Chinese government, Chinese companies should bear short -term pain.The Chinese government has stated that it will take measures to support private enterprises and help them spend difficulties.
Chinese Prime Minister Li Keqiang said on Wednesday that the Chinese government will reduce taxes and expand financing support for private enterprises.On Tuesday, the State Council of the Chinese State Council announced that it provided convenient measures for the import and export of enterprises, such as the time to reduce the turnover and improve the export tax refund policy.
But in the long run, the threat of the sharp rise in tariffs hangs on top, allowing Chinese companies to face real challenges.
For Dongshan Huachang, a seafood exporter in Fujian, China, this impact may be devastating."U.S. tariffs have caused a huge impact," Lin Donghua, manager of this private enterprise, said, "We are helpless."
China is the largest frozen fish exporter and exported more than $ 1 billion in fish fillets to the United States last year.Private enterprises account for 45%of the total exports, while state -owned enterprises account for only 10%.The remaining share is a foreign or joint venture.
Other industries influenced by Trump's latest tariffs include the furniture and home appliance industry MDASH; MDASH; Chinese manufacturers in the low -profit industry have been threatened.
As the world's largest home appliance manufacturer, China's Haier has canceled the plan to sell its GM (GE) brand kitchen appliances produced in the United States in the Chinese market. The reason is that the trade war brings additional costs and uncertaintyEssence
Kevin Hu, general manager of a family lighting equipment manufacturer in Guangzhou, said that the order volume this year has reduced "about 30%".He is considering transferring some businesses to other markets in Southeast Asia.
Sheng Min, a China Resources Association (China Resource Reycling Association), said that many projects in the industry have been put on hold since the United States imposed on the previous round of tariffs. "
For China's recycling equipment manufacturers, the United States is a huge export market. At present, recycling equipment is facing 25%of tariffs.Sheng Min said that because most equipment in the industry is customized, it is difficult for exporters to quickly find buyers in other markets.
Asiainspection, CEO of Gap and Mango, provides supply chain consultation, said that most companies will be able to withstand the impact of 10%tariffs.
"Maybe half of the impact will be absorbed by the depreciation of the RMB; 2 to 3 percentage points will be borne by the factory, and the rest will be borne by American consumers." He said.
Jonas Short, the policy research head of Everbrid Sun Hung Kai, holds the same view.
"For China, the overall cost of U.S. tariffs is very affordable. The current tariff costs are currently facing tariff costs mdash; mdash; 20 billion US dollars mdash; mdash; it is easy to offset through fiscal policy."
"China is likely to reduce taxes and subsidies for import and export companies, and may even reduce electricity and land use fees. There are also some indirect ways to stimulate the economy, such as income tax deduction."
This dispute will accelerate the two trends: labor -intensive manufacturing industries transferred from China to low -cost countries such as Vietnam and Cambodia; and China invested in the field of high -tech manufacturing and automation.
"China focuses on the long run. If they have to endure the pain of two, three, or three years, they will also stop." Shi Baitao said.
Yang Yuan Beijing, Tom Bull; Tom Hancock, Emily Fang Shanghai, Bai Gehming Hong Kong reported.Wang Xueqiao, Zhang Qi and Liu Xinning Supplement Report
Translator/He Li