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US Business Executive Kinu Kelly came to Guangzhou on the 7th China Import and Export Fair this week with a goal: Chinese suppliers who could make their essential products outside the country.
“Now, it is essential,” said the head of New York product development. “No exception.”
Knowing Canton Fair – known as Canton Fair – One of the ways to diversify its supply discipline is that US President Donald Trump has adapted to a new reality for global trade after raising Levis on most Chinese products this month.
Established in the 57, the annual Canton fair has become a two -time annual Canton fair to help the Communist country overcome US trade sanctions. China ‘The S Pre-Black Export Show, which serves as an important link among clients in the country’s broad production base and the world around the world.
However Trump’s erect new tariff – which was combined with China 125 percent of the tariff Its own exporters saw the worst situation before taking charge and threatened to run a decopling among the two largest economies in the world.
In a notice issued by the Financial Times, the organizers described the world trade environment as “fatal and complex” and warned that they would visit the end of the fair at the end of the three stages so that the displayers did not pack up quickly.
In the Canton Fair halls of Guangzhur, stunned American buyers and Chinese producers scramble to avoid finding new markets for their belongings or alternative trade routes TariffWhen the warehouse is filled with unwanted stock pile is not newly ineligible.
“Our prices for big supermarkets are already very, very low. We have no way to receive such high tariffs,” the product manager of the exppel said, which creates the roof straps for us Clients including Walmart In a factory with more than 100 employees in East Jiangsu province of China.
Rain and other suppliers have added that many products were made for certain American clients, which means that searching for customers in different markets may involve steep regulatory barriers or branding removal.
With a few obvious solutions, Rain expressed hope that both sides would be able to meet quickly to make an agreement. However, both were not committed to the timeline for discussion.
Many exporters at the 1.6 million square meter fair said that new tariffs were sold in the US market.
“This is definitely strong,” Shen Senzian, a sales manager of Jiangsu -based tool -based equipment for entertaining vehicles like coffee makers, said that a third of its sales in the United States.
“All our US customers have given them all their orders … the tariff is too much.”
Shane added, “If they don’t say it, we have no choice but to stop the US market.” “We can only find more customers in Europe or Belts and street -side countries [President Xi Jinping’s signature international infrastructure initiative]The “
Another option is to transfer production from China.
Many Chinese exporters started expanding their activities abroad after Trump imposed tariffs in the country in the first term of the office. The booths in the Canton Fair have spread to US buyers to warn the cost of “China” made by “Created” flags of Vietnam, Thailand and other Southeast Asian countries.
Vera Lee, the sales expert of Quanzu Vision Gift, with plants in Cambodia and China coastal Fujian province, says Trump’s duties will accelerate the plan to transfer the production balance to Southeast Asia.
The company’s factory in Cambodia already has a regular employees of about a thousand employees, planning to extend his site in Fujian compared to 800 and two new factories. He said that the Fujian plant would slowly transfer its focus from production and design and research, he said.
But Trump’s “mutual” duty threatens on almost all global trade partners in America – which he postponed for 90 days – means that the exporters with foreign plants were not even relieved.
The “mutual” tariffs were based on trade balance, which means that small -cost makers, such as Vietnam, Cambodia, and Bangladesh, can face more than 49 percent levels of levels.
“We have not yet been affected, but in the future we do not know, you will have to wait for the policy,” Nancy E -e -sales manager of the solar panel and energy savings unit for the US market, including the Hubei province and two Vietnam factories in China, said. “At the moment, there is no very clear solution.”
Nevertheless, with sources in sources for US business, Chinese companies run by Chinese companies in Southeast Asia can be the only option to find, Sourcing Executive John Chen says.
“Our goal is to find, produce and distribute goods outside China [it]”He said.” This is a priority. ”
“[If] Vietnam, Cambodia, Thailand, Indonesia also pays tariffs in the United States, [then] Chen said, “We have no choice but to pay them.”
“Supply chain does not exist.”
Additional Report by Cheng Long and Gloria Li in Hong Kong
