According to a report on April 27 on the website of The Washington Post, US President Donald Trump's efforts to revitalize American manufacturing by imposing broad tariffs on Chinese goods may encounter an obstacle: American factories depend on machinery and components from China. Trump claimed that his trade policy is essential for ushering in a "golden age" for American manufacturing. However, trade experts and businesses say that these broad tariffs could actually complicate the return of some industries. Not only does the US economy rely on China for finished products like toys and laptops, but it also depends on China's tools to produce various goods ranging from cars to electronics in American factories. The soaring prices of industrial machinery due to tariffs is just one example showing the chain reactions and uncertainties triggered by a trade war, highlighting the mutual reliance between the US and Chinese economies, as well as the difficulty for companies to relocate due to the deepening globalization of supply chains over the past few decades. In the past ten years, China's machinery industry has taken a dominant position globally. According to data from the China Machinery Industry Federation, since 2015, China's machinery exports have more than doubled, reaching over $869 billion in 2024. Although Germany remains the traditional leader in advanced machinery, experts say that China has rapidly narrowed the gap with Europe. According to data from the US International Trade Commission, China is the world's largest machinery exporter, while the US is the largest machinery importer, with Chinese machinery accounting for 17% of US imported machinery in 2023. The report points out, however, that this 17% figure may underestimate America's dependence on Chinese tools. For many products including machinery, direct imports from China do not fully reflect the dependence on China within the supply chain, because even machinery imported from other places might be made using Chinese components. Professor Richard Baldwin of the International Institute for Management Development studied this phenomenon and called it "hidden dependence." His research shows that all manufacturing centers around the world are heavily reliant on China's intermediate industrial products. He said, "About 40% of China's exports to the US are intermediate products, not final products. You basically can't avoid it." The American Equipment Manufacturers Association stated that mechanical components such as bearings and gears, as well as hydraulic systems containing pumps and valves, can only be purchased in large quantities from China. The report noted that despite Trump's hope for more Chinese investment in the US, tariffs have led some Chinese manufacturers planning to develop in the US to reconsider. John Ling, an advisor helping Chinese enterprises participate in American factory projects, said he heard some Chinese enterprises express "serious concerns," wondering if they could procure the necessary raw materials and machinery at reasonable prices under the new tariffs. A building materials manufacturer described how difficult it would be to set up factories in the US without Chinese machinery. The company said almost all the machinery required by American factories comes from China or Germany. "You simply cannot buy these things in the US," said a representative of the company. (Translated by Zhao Feifei) Original article: https://www.toutiao.com/article/7498698675552551433/ Disclaimer: This article solely represents the author's views. Please express your opinions by voting "thumbs up" or "thumbs down" below.