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Prices push US companies out of China, but that does not mean that "made in America" is happening. Scott Olson / Getty Images
Under the pressure of tariffs on products manufactured in China imposed by the Trump administration, a majority of US companies based in China are planning to relocate their production outside of China, but most of them they do not plan to return to the United States. , a recent poll found.
According to a survey conducted by the South China Chamber of Commerce of 219 companies, a non-profit organization affiliated with the US Chamber of Commerce, representing more than 2,300 US companies in China, more than 70% of US companies operating in southern China, the national hub of consumer product manufacturing, are planning to delay investment in this country or move production to other countries in order to keep stable finished product prices for consumers.
Among companies considering relocating their manufacturing sites, the most popular destination is Southeast Asia. Only one percent said they plan to outsource manufacturing to the United States
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The investigation was conducted between September 21 and October 10, shortly after the United States imposed a 10% tariff on Chinese goods worth $ 200 billion. Beijing has imposed new rights on $ 60 billion worth of US goods. (The 10% tariff on imports from China came into effect on September 24. On January 1, the rate will increase to 25%.)
About one-third of the companies surveyed belong to the manufacturing sector; half are in the service sector; and the rest falls into other categories.
Some other main results of the survey:
- A third of those surveyed felt that the latest price increases, combined with previous increases of $ 50 billion in Chinese products, had reduced their annual sales by $ 1 to $ 50 million.
- Ten percent of the companies surveyed estimate an annual loss of more than $ 250 million.
- Rates are hurting US companies more than their Chinese counterparts. 80% of US companies surveyed said they suffered tariffs, while 70% of Chinese companies surveyed did the same.
Chamber President Harley Seyedin warned that the recent tariffs have not fully materialized, as many commercial orders for this year were passed before the tariff window.
"The main concern at this point is that consumers in both countries may have to pay a little more for many items now and probably much higher prices in the not-too-distant future," Seyedin said in the report. 39; investigation.
Several major US brands of consumer goods have already warned consumers of future price increases. In September, Walmart said the new $ 200 billion tariff on Chinese products would raise the prices of hundreds of products sold in the United States, from Christmas trees to dog food.
In July, after imposing tariffs on Chinese products worth $ 50 billion, Coca-Cola said it would have no choice but to pass on the impact of these duties on consumers, which would result in an increase in the price of its drinks.
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