Chinese firms at the mercy of China-US trade warーNHK WORLD-JAPAN NEWS
China and the US have stepped back from their trade war by slashing tariffs after agreeing to a 90-day truce on May 12th following negotiations. The news will be wellreceived in China where uncertainty about the economic outlook is on the rise. Chinese companies and the government have their hands full trying to overcome adversity and sustain growth. This Hong Kong firm manufactures aluminum building materials and other products in Guandong Province for export to the US. US tariffs were added to the price of their products, prompting some buyers to suspend orders. The tariffs are a big blow for us, but now we have to accept them. Production sites are under pressure to review their management strategies and meetings are frequently held to discuss countermeasures. Yeah, I do I do think that that is necessary, you know, expanding to another market such as uh Middle East, right? Dubai, Saudi Arabia, Abu Dhabi. The firm has decided to boost its sales in the Middle East and India to reduce its dependence on the US market. It’s also considering building a new production facility in Malaysia. But it will take at least 2 years to construct a plant and a large amount of capital investment is required. So for now, the firm is waiting to see how the trade war pans out. If the trade war continues, it’ll be a difficult problem for small to medium-sized businesses like ours. Under the current circumstances, there’s nothing we can do. We need to assess the future first. To maintain growth, the Chinese government is promoting a strategy called self-reliance and strength. Under it, advanced technologies are produced domestically without relying on foreign countries. [Music] The semiconductor sector is one such area. In March, a record 1,400 companies from China, Japan, Europe, and the US participated in a Shanghai semiconductor trade show. China has been pushing forward with its own semiconductor development in the face of US restrictions on the export of advanced chips. A major Chinese semiconductor maker used the show to showcase its latest manufacturing processes, highlighting improvements in its technological capabilities. With the Trump administration expected to further tighten semiconductor regulations, industry participants voiced their concerns and expectations. Change and reform are needed, but it will be difficult to break through the technology barrier in a short period of time. I believe the day will come when we break through technologically. There is a time issue. But we need to look at it over the long term. With the outcome of the trade war still uncertain, the question for China is how far it can go in promoting self-reliance in science and technology to maintain economic growth.
Chinese companies and Beijing have their hands full trying to overcome adversity and sustain economic growth amid the China-US trade war. #china #usa #trade #business #economy
More stories on China: https://www3.nhk.or.jp/nhkworld/en/news/tags/30/
Please subscribe HERE: http://www.youtube.com/channel/UCSPEjw8F2nQDtmUKPFNF7_A?sub_confirmation=1