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Hong Kong manufacturers, who transferred their production of toys, electronics, textiles and plastics to factories in mainland China thirty years ago, are again in motion
. Vietnam and Southeast Asia's lower-cost economies avoid rising wages and land costs, and seek refuge as a result of escalating trade war between China and the states -United. "Many manufacturers have begun the process of relocating their production lines from mainland China because of rising costs and stricter regulations," said Clara Chan Yuen-shan, president of the Youth Council. Hong Kong Industrial Corporation (HKYIC) and the Chief Executive Officer of Lee Kee Holdings. Chan's company, founded by his great-grandfather in 1947, provides electroplating and trading chemicals for zinc, nickel, aluminum and other metals used in smart phones, toys and toys. cars. The Hong Kong company provides more than 70% of the imported zinc alloy in mainland China.
Its 1,200 manufacturing customers, almost all based in mainland China, are hardest hit by the ongoing trade war with the United States. "If the trade war intensifies or spreads to toys, fashion clothes and plastics, Hong Kong industrialists will be even harder hit because many of them are engaged in some builders have already started the relocation process, moving parts of their production lines to Penang Malaysia, or to other members of the Association of Southeast Asian Nations (Asean ), said Kerry Logitics. General Manager William Ma Wing-kai.
Additional Reading: Winners and losers like the yuan weaken against the dollar and trade fears between the United States and China become a reality
The Trade War could lead to a competitive devaluation of world currencies, with the affected countries outperforming themselves to make their currencies cheaper in terms of US dollars to make their exports more attractive
. Many uncertainties for manufacturers, and this is not a good thing for our industry, "said Paul Tai Lun, vice president of HKYIC and regional director of Mainetti (HK), a manufacturer of hangers "The yuan has fallen more than 6 percent in a year since mid-June, the start of the trade war. If a cheaper yuan can help exporters compete in the international market, the United States can also take punitive measures to avenge itself, "he added, of the trade war by adopting more innovation and artificial intelligence and robotic technology to reduce costs and improve production.
Another strategy could be for Hong Kong industrialists to turn their export strategies to the growing market of affluent consumers "Manufacturers who are hit hard by the trade war should also expand their sales in the continent's cities," she said. "The Greater Bay area has more than 68 million people while Shanghai has more than 20 millions of people. These domestic customers would help offset their loss in international trade. "
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