Despite a high tariff break, Chinese factories are exposed to uncertainty: NPR

Beijing – hours after the United States had announced that on May 12th most of its high tariffs for Chinese goods temporarily take the break during the break, NPR checked NPR at Jiang Kun, a freight resident in southern China.

How did the business go?

Within seconds he only replied two words: “withdraw”.

Only last month were from China before an eyewater tax of Up to 245% When they came to the United States, the USA and China announced a 90-day break for most of these tariffs to unleash an increase in china that was pent-up to the US growled logistics lines And rose freight prices when the senders delayed the capacity to China.

“How children play a game”

However, there is still great uncertainty among factory owners in China who say that NPR orders have decreased as a whole than frightened American retailers insure whether the tariffs will return after the break.

“It is like playing two children between yourself,” Joyce Tian mocked when he was asked about US China trade relationships.

Tian, ​​a sales manager in Dongguan, where many Chinese factories are located, says that exports to the United States make up half of their company’s business. They make fans and heaters for which American importers would normally give up orders in a few weeks to prepare for the fall. However, the total sales volumes are low this year.

“Some [American retailers] I still haven’t made a decision [about whether to buy from us]. You didn’t answer our e -mails. Maybe they are still waiting and watch, “says Ivy Lee, sales manager of a Chinese homeware manufacturer who was sold to retailers like Walmart in front of the tariffs.

Lee believes that the demand will return at some point: “These are everyday consumption materials. If you need it, you will buy.” As far as the broader uncertainty is concerned, she adds: “I try not to worry too much. Change of guidelines are not in the hands.”

Some small companies in the United States hurry to buy the existing Chinese factories if the tariffs rise again.

Chinese exporters rush to send to the USA during the ceasefire

“At the moment everyone is trying to bring so much of their programs into the US completion within these few months,” says Tian Xin, a freight forwarder for goods who arranges the logistics for great freight and also coordinates paper stuff for customs clearance for Chinese exports.

Jenny Tian Working in the freight expansion in the South Chinese city of Shenzhen and says that she has made calls for huge product orders. But the problem is shipping.

“We could soon stand by what we call” Container Rollovers “, where they are not invited even if they have already paid a container square on the ship and are pressed for the next available ship,” says Tian. For your company, shipping costs to the west coast of the United States have increased by $ 1,500 per container.

Many ships that operate the routes between the west coast and China were redirected to other routes, creating delays because exporters in China are waiting for ships to return in Häfen in China.

“You need to return these ships at least [to China]And they create disruptions and they don’t have enough empty containers, etc., ”says Eric Martin-Nuville, Executive Vice President in Singapore for Geodis, the French logistics company.

“The US guidelines are currently unstable”

In the meantime, Chinese freight forwarders create immediate emergency plans that exclude the sale to the USA

“We have to search for new customers every day,” says Mike Zhong, a freight forwarder based in southern China.

Chris Que, regional director in a factory in the home act in the southern city of Guangzhou, said that his company had initially kept selling to the US market due to concerns about volatility. The company produces household appliances, including gas boilers and heat pumps.

“The US guidelines are currently unstable. Customs can be levied or changed at any time,” said Que. Instead, he focuses on European customers.

Data from the national statistics office of China show that the value of total exports when US tariffs reached its peak actually jumped by 8.1% in April compared to the previous year, Hit Predictions of the economists.

The trade in the USA had dropped, but exports to Southeast Asia and Europe flooded With a high level to compensate for the lost business – although it is possible that some of these exports have still ended up in the USA

Emily Feng reported on Washington, DC and Aowen Cao, the research of Beijing.