Royston Carr Asset Management - Chinese manufacturers seek ways to retain foreign customers as trade war tariffs affect their businesses.
Online PR News – 02-May-2019 – Taipei, Taiwan – Harsh retaliatory tariffs imposed on goods to the value of billions of dollars in the trade war between China and the US have placed a significant amount of pressure on Chinese manufacturers and many factory owners are resorting to innovative measures in an effort to retain foreign clients.
Royston Carr Asset Management analysts say many Chinese manufacturers are offering sizable discounts, reducing workforces and even moving production to overseas locations to try and offset the impact of punitive tariffs imposed by the US.
European Union duties on products like solar panels and electric bikes are also adding to the burden shouldered by Chinese manufacturers.
Although last month saw some encouraging growth for China's manufacturing sector with industrial output increasing at its most rapid rate in almost five years and exports increasing by more than anticipated, many manufacturers that rely on US sales are still suffering.
Royston Carr Asset Management analysts say the survival of many of these manufacturers hangs on whether or not a trade agreement between the US and China will be reached.
Some companies are offering discounts of up to 8 percent to try and entice their foreign customers saying that something has to be done to counter the heavy tariffs these customers now have to fork out for.
Other manufacturers are attempting to pass on their increased costs by hiking their prices by as much as 15%.
Many Chinese companies have simply lost once-loyal customers who are refusing to pay the higher prices which are a result of hefty tariffs.