To avoid US import tariffs, guess where Chinese are moving?
The world's largest economies have been in the midst of a trade war for months, after the US president imposed 25 tariffs s on a number of Chinese products.Source: Hina, Seebiz
Donald Trump in this way prompted Beijing to respond in kind.
In order to counter US intentions, Chinese manufacturers of a wide range of products, ranging from bikes to rubber and plastic, and textiles, have decided to move production facilities abroad. This is according to publicly available data, Croatia's Hina agency is reporting.
These new destinations include Mexico, Thailand, Myanmar, Vietnam, and Serbia, said to an article published on the SEEbiz.eu website.
"New tariffs will inevitably force companies to consider supply chains around the world as they will become 25 percent less competitive overnight," said Christopher Rogers, a supply chain specialist at Panjiva.
As for Serbia, the tire manufacturer Linglong Tire decided to invest 994 million dollars in building a factory in this country, "mostly due to favorable loans."
"The whole tire industry is facing a difficult situation due to the trade crises," Linglong told to investors last month, pointing to an "uninterrupted series" of anti-dumping disputes against China.
"Building a factory abroad allows growth through avoiding international barriers to trade," the company's boss added in his address.