China outlook murky for executives as companies plan for Trump tariff blitz
Days before the US presidential election, surveyed executives at companies operating in China said they could relocate if tariffs go up
More companies operating in China are considering closing factories and exiting the country, according to a survey of corporate executives – a strategic shift in anticipation of the higher tariffs applied to Chinese goods if former United States president Donald Trump is elected to a new term next week.
In particular, manufacturing exporters showed greater intent to shift supply chains and expressed a more subdued outlook for the future of their businesses in the survey, released by financial services firm UBS on Thursday.
More than 90 per cent of the 419 CFOs polled anticipated additional tariffs in the event of a Trump re-election. The UBS survey was conducted between August and September.
While most expect tariffs to stay below 60 per cent, companies are already strategising, the survey report said, with many planning to expand into other markets, lower export prices and relocate supply chains to mitigate risks.
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Nearly a third of the CFOs said they may close their factories or depart the country if tariff hikes materialise, a notable increase from the quarter of respondents who gave the same answer in the previous survey.