China-US Trade Frictions: Ceramic manufacturers in Northeast China concerned

World
Europe

02:21

The latest round of US tariffs will impact Chinese businesses, as well as American consumers that buy their products. It has many wondering, what will the new tariffs accomplish in the long run? CGTN's GUAN YANG re-visits a ceramics manufacturer who is concerned, but has plans to offset losses.

It's the news that ceramics business owner Lin Mao hoped he would never hear. His company will face additional taxes on their exports to the US.

LIN MAO, CHAIRMAN SONGHAO CERAMIC PRODUCTS "It's 10% and there is no way around it. But surprisingly our sales volume in the US hasn't been affected so far. In the end, it's our US customers who will foot the extra tax bill."

Earlier this year, Lin's company secured a US order worth 15 million US dollars. Chinese-made ceramics survived the previous round of tariffs, but not this time. In response, Lin is rolling out new products for the European markets.

LIN MAO, CHAIRMAN SONGHAO CERAMIC PRODUCTS "I still can't figure out the intention of the US's tariffs. On paper, it looks like Chinese products are being slapped, but the supply chain today is spread across the world: our designers are from Italy, some of our materials are from Southeast Asia, our equipment is purchased from Spain. So reluctantly, these countries are now involved."

GUAN YANG FAKU COUNTY, LIAONING PROVINCE "The Trump administration's tariffs on another 200 billion US dollars of Chinese goods kicked in on Monday this week, ramping up the trade war between the two biggest global economies. As for business owners on both sides of the pacific, many are hoping for the best, while preparing for the worst."

China's Ministry of Commerce said in a statement that Beijing is being forced to hit back to safeguard its own interests and the world's free trade order.

The first round of US tariffs imposed in July focused largely on goods that businesses purchase, which do not appear on store shelves, such as aircraft parts and heavy machineries. But the tariffs list this round is bond to push up prices at many American retailers that import Chinese products just like Lin's ceramic tiles. GUAN YANG, CGTN.