The US-China trade war is already making life tough for Chinese exporters of machinery, electronics and bathroom fixtures, a vast market that makes up half of China’s annual exports to the United States, Caixin reports.
US tariffs currently cover around $250 billion worth of Chinese exports and that includes two-thirds of mechanical and electronic products, according to a recent report by the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products.
The tariffs will affect 10% of China’s overall machinery and electronics exports. China exported $1.06 trillion of such products during the first nine months of the year.
A senior figure at the Chinese Academy of Social Sciences told Caixin that companies may have to try to circumvent US tariffs, at least in the short term, in order to remain competitive.
“In the short term, it might be a good practice for the electromechanical industry to find a cooperative company abroad or re-export through Hong Kong or Singapore,” the researcher said. “The firms could also consider finding ways to manufacture similar products which use the same technology, but that are not on the tariff lists.”