The Trump administration announced stiff tariffs on Chinese goods on Thursday, and the exact categories of products involved are due to be provided soon.
Around 60 kilometers away from the capital of Liaoning Province is Faku county, one of China's largest ceramic production bases. “The county's economy is driven by this business. Employment, tax revenue and infrastructure development all depend on ceramics,” said Lin Mao, the owner of the county's well established ceramic manufacturer.
Faku county of Liaoning province /CGTN Photo
Faku county of Liaoning province /CGTN Photo
The company has just secured an order of ceramic tiles worth 15 million US dollars from their US customers like Starbucks. Lin told CGTN that the "Made in China" brand will never be as cheap as it used to be, and a price war with foreign competitors is out of the equation because of rising operational costs. And the reason why they could win over our foreign competitors is efficiency. "We understand what our foreign customers want. More importantly we intend to meet their desires much quicker than anyone else in the industry." Said Lin.
China's ministry of commerce said the country would take necessary measures to defend its legitimate rights and interests. But for Chinese manufacturers like Lin, they don’t seem to be bothered by the possible increase on foreign tax. Because he thinks what will happen at the end is that, as the quality of Chinese products improves, this idea of "made in China” will be indispensable to US consumers. So, people in the US are the ones who will be paying the tariffs which their government imposed.
Experts point out that these tariffs will likely cover products from high-tech sectors like robotics, aerospace, high-speed rail, and biotech.
Lin Mao talks to CGTN reporter. /CGTN Photo
Lin Mao talks to CGTN reporter. /CGTN Photo
And small and medium sized Chinese companies are already making back-up plans should their product land on Trump’s tariffs list. Yu Jiang, a manager from Shenyang who has years of experience in foreign trade told CGTN: "We don't think the tariffs will affect us that much, as the US market only accounts for a small portion of our international sales network. If our products are involved in the tariffs, we can just shift our strategies to other foreign markets."