It did not happen over the night, says Kenny Yao with AlixPartners, which advises Chinese firms on how to fight tariffs.
During Trump’s first term, many Chinese firms doubted his tariff threat, he said the BBC. Now they ask if it will follow the supply chain and attach tariffs to other countries.
Just in case he does it, says Mr. Yao, it would be reasonable if the Chinese business looked further: “For example, in Africa or Latin America. It’s more difficult, but look good at the areas you haven’t studied before.”
Because America relies on itself at first, Beijing does his best to appear stable business partner, and there is some evidence he works.
China has passed by the United States to become a prevailing choice for Southeast Asia, according to the ISEAS Yusof-ISHAK analytical center in Singapore.
Despite the fact that the production has moved abroad, the money is still coming to China – 60% of the materials produced in Mr. Huang’s factories in Pnopen, come from China.
And export blooms when Beijing is more largely in the production of high -end, from solar panels to artificial intelligence. Last year’s trade surplus with the whole world – at the back of the export jump nearly 6% a year – was a record $ 992 billion.
However, Chinese enterprises – in Jiangsu and Pnopen – are preparing for an uncertain spell, if not violent.
Mr. Peng hopes that the US and China can hold a “friendly and calm” discussion to keep tariffs “within a reasonable range” and avoid a trade war.
“The Americans still need to buy these products,” he said before going to a meeting with new customers.
