Can catlike US tariffs chase China’s manufacturing mouse out of the Asean maze?
‘Every investment is a gamble’, and Chinese factories face ‘huge losses’ by operating in Southeast Asian countries facing Trump’s tariffs, according to industry insiders
Chinese exporters like Huang Yongxing are desperate for some straight answers so they can start making and shipping goods from their factories in either China or Southeast Asia.
And the answers – or at least updates – that Huang does get, he shares on his social media account via weekly updates that have gained traction among owners of small and medium-sized businesses as disruptive and volatile tariff policies out of Washington continue to redraw the profitability lines for manufacturers.
Trump’s move, announced on Monday, puts Southeast Asia – China’s largest export market – in Washington’s trade crosshairs while dealing a direct blow to Chinese exporters’ transshipment strategies throughout the region.
American policy ambiguity on transshipment, with high tariffs threatened but lacking implementation details, creates huge uncertainties for outbound Chinese investors.
In response, many Chinese companies – both those that have already expanded overseas and those with plans to do so – have had little option but to play it safe.