This situation didn’t develop suddenly. Kenny Yao from AlixPartners, who advises Chinese companies on tariff issues, notes that during Trump’s first term, many Chinese businesses were skeptical about his threats. Now, they’re concerned he might extend tariffs to other countries as well.
Yao suggests that companies in China should explore new markets, like Africa or Latin America. While this can be challenging, branching out can offer new opportunities.
As the U.S. focuses on its own interests, China is trying to position itself as a reliable partner. Recent findings show that countries in Southeast Asia are increasingly choosing China over the U.S.
Even with production shifting to other nations, China’s influence remains strong. For instance, 60% of the materials used in clothing production at factories in Cambodia come from China.
Exports from China continue to thrive, particularly in advanced manufacturing sectors like solar panels and artificial intelligence. Last year, China recorded a trade surplus of $992 billion, thanks in part to a 6% increase in exports.
Despite this success, businesses in places like Jiangsu and Phnom Penh are preparing for uncertainty ahead. Mr. Peng hopes for a constructive dialogue between the U.S. and China to keep trade tensions manageable. He believes American consumers still need Chinese products, which could help ease any potential trade disputes.
