{"id":14912,"date":"2024-11-13T14:30:43","date_gmt":"2024-11-13T14:30:43","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=14912"},"modified":"2024-11-14T14:18:39","modified_gmt":"2024-11-14T14:18:39","slug":"what-does-trumps-re-election-mean-for-businesses-in-china","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-does-trumps-re-election-mean-for-businesses-in-china\/","title":{"rendered":"What does Trump’s re-election mean for businesses in China?"},"content":{"rendered":"\n

Amid the hustle of last week\u2019s CIIE \u2013 the world\u2019s largest import expo and China\u2019s stage for promoting foreign imports \u2013 Donald Trump\u2019s re-election was the talk of the town. While America\u2019s choice may not have surprised some, the ramifications remain as unclear and unpredictable as the President-Elect himself, as this analysis from China Skinny<\/a> explains<\/h2>\n\n\n\n

Although Trump\u2019s re-election will be felt globally, few countries are likely to be affected quite like China. Trump is a champion of isolationism and the architect of the US-China Trade War and sweeping tariffs on Chinese goods. China was a focal point in his recent campaign, where he pledged a blanket 60% tariff on Chinese imports. Yet Trump is known to embellish, and his promised iron-fist approach to China may not unfold exactly as people expect.<\/p>\n\n\n

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To start, a 60% tariff would not bode well for the middle Americans who voted for him, hoping for a return to the pre-outsourcing-to-China days \u2013 not during his presidential term, anyway. During the last tariff hike, businesses quickly realised how complex, fragmented, and China-dependent supply chains had become.<\/p>\n\n\n\n

Reshoring manufacturing from China to the US is not straightforward. Most manufactured goods require numerous components, many of which are made in China and thus still exposed to these tariffs. This became evident with the last set of tariffs. Given the reliance on China for so many goods and components, the biggest impact of new tariffs would be higher prices and inflation in the US \u2013 one of the main pain points for the Biden administration and a primary driver of change.<\/p>\n\n\n\n

In the longer term, some businesses may look to diversify to other manufacturing locations. However, the challenges of shifting supply chains out of China, coupled with China\u2019s unique advantages as a manufacturing powerhouse, mean that China is likely to remain the world\u2019s factory during Trump\u2019s second term and beyond.<\/p>\n\n\n\n