A new Reuters poll shows that Chinese exporters are increasingly concerned about the economic impacts of a trade war, but trust that they can withstand any squeeze from tariffs.
Over 60% of 91 firms participating in the biannual Canton Import and Export Fair earlier this week said that the trade war was a cause for concern. This is the first poll by the news agency to probe the topic since the US levied tariffs on $200 billion of Chinese goods last month.
“We wanted to expand this year into the US, but the trade war has really thrown a spanner in the works,” said the director of a company that makes smartphone batteries. “It is only a matter of time before factories in Southeast Asia will be able to make the same batteries,” she added.
A majority of the respondents expects the trade war to go on for at least another year, contrasting strongly with a similar poll taken in April at the trade expo, when only 26% believed a full-blown trade war was on the cards.
Just 28% expect their orders to fall this year, however, with the majority bullish about their mid- to long-term sales prospects.