Friday, August 30, 2019

Who will be the biggest US-China tariffs loser?

It won't have escaped US officials' notice that some Chinese companies are re-packaging goods and shipping them from other Asian ports in order to avoid US 'origin China' sanctions, but it may not yet have hit home that some US exports to China face competition of their own.

China has the ability to strongly influence its importers - to the extent that it can tell companies to decrease the number of items they import from the USA or even to find alternative source markets.

US president Donald Trump also needs to accept that even if China's government doesn't act to influence its importers, the US's 'on again, off again' relationship with China may prompt Chinese businesses in many industries to look for long-term alternative 'reliable' supplies and suppliers.

The old saying that 'customer loyalty often means the lack of a viable alternative' may be one Trump comes to understand too late


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