Reference News website reported on April 11 that the US "New York Times" website published a report titled "In the Tariff Storm, Many Companies See China as the Safest Haven" on April 9. The report is compiled as follows:

Despite the additional tariffs imposed by US President Trump on China, his series of tariffs on various Asian countries and the unpredictability of his next moves have prompted some companies to continue rooting in China. This is completely opposite to what Trump hoped for.

Trump has been increasing pressure on China. However, unlike what happened during his first term, Trump has imposed high tariffs not only on China but also on other countries and regions while launching a tariff war against China.

But for some companies, so-called "reciprocal tariffs" have unintentionally made China a more attractive production site and procurement source. This eliminates part of the motivation for enterprises to shift production and procurement to Vietnam, India, or other Asian countries.

In addition, the chaos caused by Trump's announcement of tariff policies has made many companies more cautious about making significant adjustments to their supply chains. In the face of ongoing turmoil and uncertainty, businesses are choosing to continue doing what they are familiar with: maintaining long-standing relationships with Chinese suppliers or manufacturing partners.

Travis Luther, founder of MOSO Pillow, a bamboo fiber bedding manufacturer based in Denver, said, "Staying in China and keeping operations running smoothly is everyone's choice at present."

Luther said, at an American entrepreneur conference this week, like other participants, he did not spend time looking for new partners or preparing to move his business out of China. Instead, he is working with his Chinese partners to save costs or develop new products.

"Cost advantages are no longer the main reason why most companies stay in China," Luther said. "The real reason is that China has very advanced manufacturing processes."

Trump has claimed that tariffs will help bring manufacturing back to the United States, but this remains a challenge. Currently, even with tariffs eroding China's cost advantage, most American factories cannot match China's manufacturing capabilities, capacity, and speed.

During the escalation of trade tensions under Trump's first term, many American businesses and multinational corporations chose to move some production from China to other countries. But for most businesses, the United States is not a feasible option.

Replacing suppliers is a difficult, expensive, and time-consuming process. Luther mentioned that a consultant once told him that building a new factory for planting and processing bamboo fibers in the United States would require at least $6 million. During the years it takes for bamboo to grow, he still needs to pay tariffs to import raw materials from China.

Completely shifting the supply chain to another country requires time and money, which is something businesses are reluctant to do.

Meanwhile, the Hong Kong "South China Morning Post" website reported on April 9 that amid the impact of tariffs on China, CEOs of US companies said that bold moves by foreign enterprises may increase their market share in China.

The report stated that while American businesses are increasingly anxious about the growing impact of rising tariffs, a technology solutions service provider headquartered in Tennessee remains optimistic about doing business in China.

Ali Ding, CEO of Premier NX, said that under the soaring tariffs, some American companies may hope to maintain or even expand their business in China, but they need a new operational model. The company provides services to American and Canadian clients in China's transportation and financial sectors.

He explained, "From a policy perspective, the situation may be somewhat unstable, so companies should really consider how to reduce risks, rebalance operations, and achieve this without relying on legislative changes."

Ali Ding pointed out that some American companies have begun evaluating with their Chinese partners to determine how much cost can be passed on to customers and how much cost these companies and suppliers can absorb.

"For companies in China," Ali Ding said, "I believe they don't want to leave. They expect the government to provide some guarantees regarding policy consistency and continue to offer good business conditions. The key is to withstand and flexibly respond to the current situation."

Ali Ding noted that for companies that decide to "act quickly" and "take bold actions" during market fluctuations, this sometimes helps them expand their market share.

(Compiled by Cao Weiguo and Li Sha)

Original article: https://www.toutiao.com/article/7491877400901419529/

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