Chinese firms, anxious to avoid choppy geopolitical waters, chart a course for Vietnam
- Chinese companies, burdened by tariffs and higher costs, have relocated to Southeast Asia in droves, particularly Vietnam
- But a complicated legal environment and rising labour expenditures present challenges to firms looking to make the move
Carl Ying gets a throbbing headache every time a new season for orders rolls around.
In recent years, the electric shaver exporter has seen fewer purchases from his United States-based clients.
But the obvious impatience he observed late in 2023, when they discussed this year’s shipments, was a worrying sign their relationship may be at stake.
“They told me to go outside,” he recalled. “It’s their suggestion of relocating to a country with lower costs.”
03:23
Xi Jinping says Vietnam is a ‘diplomatic priority’ as Chinese leader seeks closer bilateral ties
Quarrels like these are common for Chinese exporters amid protracted trade tensions with the United States and an exodus of manufacturers to cheaper locales like Vietnam.
Ying has supplied a majority of his products to American barbershops and beauty parlours for years through his two factories in China.