Page 25 - ARUBA TODAY

BUSINESS Tuesday 17 april 2018
A25

Chinese exporters scramble to cope with Trump tariff hike

By JOE McDONALD Trump left time to negoti-
AP Business Writer ate. A public comment pe-
BEIJING (AP) — Facing riod runs through May 11,
a possible U.S. tariff hike, with a hearing scheduled
one of China's biggest May 15.
ball bearing makers, Cixin Economists and Chinese
Group, is weighing plans officials say the tariff hike's
to rush shipments to Ameri- overall impact on China
can customers before the should be limited. But for
increase makes its sales un- exporters that depend on
profitable. the U.S. market, the poten-
The company in the east- tial costs are alarming.
ern city of Ningbo is among Knock-on effects could
exporters of goods from greatly increase the im-
motorcycle parts to elec- pact, Moody's Investors
tronics that are scrambling Service researchers said in
to cope with President a report. It said that Chi-
Donald Trump's higher du- nese manufacturers that
ties by shipping early, rais- supply inputs to targeted
ing prices or finding new sectors would see reduced
markets. demand and more pric-
The 25 percent increase ing pressure, spreading the
would turn Cixin's profits to effects of tariffs deeper In this April 11, 2018 photo, a man looks at robots at the Global Sources trade fair, a trade fair
losses in the U.S. market, into the Chinese econo- where Chinese manufacturers meet western buyers in Hong Kong.
which takes 30 percent of my. Manufacturing and Associated Press
its exports, according to processing of metals and
Wang Liqiang, a company metal products, as the key and some metal products, hours later, the Wenzhou the United States last year
manager. input sectors for technolo- meant to offset what the city government's foreign totaled $1 billion, accord-
"We are considering man- gy-product manufacturing, Trump administration says affairs office called AP to ing to Li. That would mean
ufacturing as many ball would be hurt the most. are improper subsidies that ask about its interviews. if the tariff hike applied to
bearings as possible for Chinese exporters supply allow them to sell at unfairly Electronics manufacturers all their sales, it could add
the U.S. market before the most of the world's mobile low prices. also plan to ask buyers to $250 million to the cost.
imposition of tariffs," said phones, personal comput- Others are confident Amer- share higher costs, said Li If higher tariffs hit, "they will
Wang. "We can do it by ers, televisions, toys and ican customers cannot do Zengyou, secretary general raise the price," said Li. "If
working overtime." other light manufactured without them. of the local manufacturing the U.S. customers failed to
Some companies are look- goods from thousands of Makers of motorcycle com- chamber of commerce in accept it, they would stop
ing at ways to hide their factories. ponents plan to use that the eastern city of Zibo in exporting to the United
Chinese origin by shipping They are flexible and re- leverage to ask buyers to Shandong province. States and turn to explore
goods through other coun- sourceful but many are split the cost if tariffs rise, Zibo's electronics exports to other markets."q
tries. struggling with higher costs said Pan Jianle, an official
"Maybe customers will buy and slowing demand. Chi- of the Motorcycle Parts As-
from South America, and na's total exports last year sociation in Wenzhou. She
then South America sells to rose 7.9 percent, down said they export worldwide
the U.S.," said Yvonne Yuan, from the heady double- but the United States is their
a sales manager for Shen- digit rates of the past de- No. 1 market.
zhen Tianya Lighting Co., a cade. "The U.S. motorcycle parts
manufacturer of LED bulbs. The United States buys industry relies heavily on
Trump says higher duties on about 20 percent of Chi- China," said Pan. "It is dif-
$50 billion of Chinese goods na's exports. But Americans ficult for U.S. customers to
are meant to punish Beijing are especially important find products with good
for stealing or pressuring to exporters because they quality and value for mon-
foreign companies to hand buy electronics and other ey from other places."
over foreign technology. high-value goods, includ- Such a politically charged
The plan targets goods U.S. ing many targeted by conflict has left companies
officials say benefit from Trump's tariffs. and local Chinese officials
improper Chinese policies Some exporters already jumpy.
including machinery, indus- are reeling from previous Pan declined to provide
trial components and aero- U.S. tariff increases of up the value of exports of mo-
space, telecoms and other to 500 percent on washing torcycle components to
technology. machines, solar modules the United States. A few