Reference News, July 22 report. According to the Bloomberg News website on July 18, in a factory in southern China, hundreds of workers wearing blue safety helmets are producing kitchenware and barbecue accessories for international retailers such as Walmart. In a huge workshop (nearly the size of six football fields), there is a bustling scene, with various products from barbecue tongs to food storage containers undergoing assembly and packaging processes. Just next door, the staff lounge is full of energy: designers and engineers are playing table football and ping-pong, while baristas are serving up cappuccinos...

The report said that this is one of several factories operated by Hui Long Industrial Co., Ltd. in China. Hui Long was formed by American Jacob Rosman, who merged his Shanghai trading company with the factory run by Alan Chen in Guangdong. The two joined forces to establish a business that designs, develops, manufactures, and sells products globally. Rosman joked that he and Alan Chen are like a couple, even more harmonious than a real couple, because they never argue. Rosman said, "My own marriage can't achieve this."

However, as the trade war launched by US President Trump disrupted global supply chains, manufacturers like Hui Long are making adjustments. In 2018, after Trump first imposed tariffs on China, Hui Long adopted a "China + 1" strategy, moving part of its business to Cambodia. Rosman said that under the increased geopolitical tensions and the impact of the pandemic, the initial "risk management" measures became a necessary measure. Now, Hui Long has a 400-person factory in Cambodia, a 300-person factory in India, and is also involved in other joint ventures.

The report said that Hui Long's main production base in China has suffered significant losses. The company's annual revenue usually remains around $160 million, but it is expected to decrease by 20% in the future.

As Trump's brinkmanship policies repeatedly hit exporters, Hui Long's adjustment strategies have been repeated throughout the vast Chinese manufacturing sector.

Now, great uncertainty still exists, and Trump's current tariff policies also target those alternative production countries that were favored during his first term.

The report said that China's economy grew by 5.2% in the second quarter of this year, exceeding expectations, and the increase in exports to other market countries has offset the decline in exports to the US.

Alan Chen said that Hui Long is seeking to develop other markets, such as Europe. Europe already accounts for about 30% of the company's revenue. However, the European market is too fragmented, with varying preferences among countries.

Rosman said that he believes the US and China are engaged in "strategic competition," but he is unsure whether he understands the significance of the trade war. He thinks that tariffs will not bring manufacturing back to the US, and rising prices will force American consumers to "bear the consequences of the tariff policy 100%."

Rosman said, "Americans don't want to make spatulas; they just want to eat burgers. Bringing manufacturing back to the US is impossible." (Translated by Liu Ziyan)

Original article: https://www.toutiao.com/article/7529725531085718025/

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