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USA-China trade war: could it be a ceasefire at last?

 

Started on March 2018, the trade war between China and USA has been lasting for more than one and half years.

The effect of the trade war between China and USA is positive for our customers, as they are mainly in Spain.  As you know, the United States are China’s largest trading partner, accounting for around 19% of total Chinese exports in 2017, according to the figures from China customs.  And according to USA’s plan, by the end of 2019, the increase of tariffs will cover almost all the goods exported from China to USA if an agreement is not achieved before December 2019.

The result of these actions has already caused or will cause the reduction of exports of some certain goods from China to USA; those factories which have big share of orders from USA will have a very difficult time, and they need to find other customers to fill as much as possible the gap between their production capacity and the current orders.

And our customers could  negotiate the best prices and the best deal terms, but we don’t suggest our customers to take advantage of the difficult moment suppliers are going through and squeeze too much for unreasonable cheap prices or tougher payment terms if they already have relatively reasonable ones. Supporting them and helping them to overcome these difficulties will be of great help to strengthen a closer relationship with them and benefit from a future long term cooperation, because we believe that the trade war between China and USA won’t last for too long.

Both countries will find a solution, because any trade war will be a lose-lose game.

 

Barry Chen. Product Developer

Ategi International

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