China’s export-driven economy is racing against time to establish US factories and escape crippling tariffs imposed by the US government. The new facilities, set up in various parts of the country, aim to shield businesses from a 20% tariff hike on $360 billion worth of Chinese imports.
Chinese exporters are taking a complex and costly approach to navigate the changing trade landscape. Many have been forced to pull out their resources and personnel to establish US bases, with some owners working long hours to secure warehouses, shipping arrangements, and US work visas for employees.
The stakes are high, as nearly 95% of Chinese exporter Ryan Zhou’s orders come from the United States. Without access to this market, his business may struggle to survive. The trend is not unique, with numerous Chinese manufacturers across various sectors, including petrochemicals and printed goods, following suit.
As tensions between the US and China continue to escalate, these companies are racing against time to secure a foothold in the American market.
Source: https://www.scmp.com/economy/china-economy/article/3307943/chinese-firms-race-open-us-factories-avoid-sky-high-tariffs