At the end of March this year, high-level American business executives such as International Business Machines Corporation (IBM), chip maker Qualcomm and private equity firm Blackstone gathered together to meet with Vice President of China Wang Qishan. Participants revealed that the Chinese side Notice, If the tension between the US and China increases, "Please tighten your seatbelt."
Wang Qishan appealed to these business leaders at the time to work harder to dissuade US President Trump’s government from launching a trade offensive against China. One of the participants said: “The Chinese message is very clear and many companies will become victims of the US-China trade war.”
Washington today announced that it imposed a 25% tariff on Chinese goods worth a total value of US$50 billion, and in particular locked down products related to “Made in China 2025.” Trump also threatened that if China responds, the United States will respond with more tariffs.
Beijing was not to be outdone, and subsequently announced a 25% tariff on US$50 billion U.S. goods. It also stated that all economic and trade results previously negotiated between the two parties had lapsed.
The report pointed out that the world's two largest economies fighting the trade war will inevitably harm the businesses and consumers of the two countries, especially the expansion of their business territory to multinational companies in China. Today's global supply chain is complex, and many foreign companies purchase parts from other places in China. Assembled products, then sold to the United States and other markets, once the United States launched a trade offensive, these companies are vulnerable to Beijing pressure and retaliation.
According to The Conference Board of the New York think tank, 43% of the Chinese exports are foreign producers, including Taiwan and Hong Kong; and the foreign capital of China’s exports is 77%. The Trump administration added tariffs this time. 5. Communication is just a key industry.
As multinational corporations assess the potential impact of heightened trade tensions between China and the United States, at least two personal computer (PC) makers are in the process of inquiring about moving some production lines from China to the United States.
The report quoted a person familiar with the matter as revealing that Hon Hai Group has examined its supply chain to measure the level of expertise of Chinese suppliers. This measure may be used to assess the impact of tariff increases between China and the United States. It is unclear. Hon Hai has not responded to the Wall Street Journal's request for comment.
Boeing delivered 202 aircraft to China last year, accounting for more than a quarter of total sales. If China retaliates against the United States with a single Airbus, Boeing fears heavy losses. Qualcomm acquired NXP Semiconductors In the case, whether Beijing accelerated the review and release, there are also variables.
The Trump administration determined that Beijing exerted pressure on American companies to transfer technology to Chinese companies, thus strengthening trade offensives and announcing tariff increases on Chinese goods. It similarly tore off US Treasury Secretary Steven Mnuchin in May and Vice Minister of China’s State Council Liu He After several rounds of negotiated armistice agreements.
Some Chinese officials expressed frustration with the continuous change of the Trump administration's position and said that this would hurt the credibility of the U.S. government. Chinese officials claimed that China would not make any concessions in the face of Washington’s tough stance, and in particular would not give up manufacturing. Upgraded "Made in China 2025" plan.
The report quoted an unnamed Beijing official as saying: "If the United States believes that the pressure means is useful, then it is wrong."
Jacob Parker, Vice President of China Affairs for the U.S.-China Business National Committee (USCBC) pointed out that some U.S. businesses have faced stricter regulatory review in China. For example, the customs clearance time of products has lengthened, and the Chinese authorities have strictly applied for advertising language. Some of the cars exported to China by the United States, such as pork, have accumulated in the port.
Peng Jiening said: "The most important thing in the Chinese market is to keep a low profile and make sure you completely comply with the regulations."