Yet with President Donald Trump escalating his tariffs on Chinese imports, Cedar must now pay hefty taxes on critical imported parts - tariffs it didn't have to pay when that manufacturing was done overseas.
China retaliated in response to Mr. Trump's tariffs as promised, following through with its own tariffs on $60 billion in US goods from aircraft to liquified natural gas. 1, 2019, the new tariffs will increase to 25 percent. Farmers in the Midwest, where pro-Trump voters are concentrated, have suffered huge losses because of the tariff war Trump has launched against numerous US' trading partners, especially China.
China's policies on trade facilitation and investment liberalization, in sharp contrast to the USA strategy, have been well received around the globe.
The association also said it believed using retaliatory tariffs to curb IP theft might negate the Trump administration's recent successful work on behalf of American companies, such as recent tax reforms.
The two countries are locked in combat over Washington's allegations that Beijing pilfers foreign trade secrets and forces USA companies to hand over technology in return for access to the Chinese market. China, however, has taken well-considered countermeasures which have not only defeated the US' designs but also alienated some American businesspeople who earlier had supported the Trump administration in the hope of deriving some benefits for themselves.
"The main impact for the US would be on corporate earnings and the stock market, partly due to uncertainty caused by the speed of change", said Derek Scissors, chief economist at the China Beige Book. At Air China Ltd., freight to the U.S.is booming. That escalation could spur US companies to pre-emptively load up on those goods, too, Deutsche Bank said in a report this week.
Trump's tariffs to sting U.S. businesses in China, but not force them to move back home - AmCham China Washington's latest decision to impose new tariffs on $200 billion worth of Chinese exports won't make China-based American companies relocate to the USA, but will "cause suffering" for them, the American Chamber of Commerce says. "And as long as it was a really small fraction of GDP, it is not a big deal, but we are running [a trade deficit of more than] $500 billion at an annual rate".
"It isn't clear what steps China can show it is taking in the short-term to abandon its entire industrial strategy, which is ultimately a long-term process", Megan Greene, chief economist at Manulife Asset Management, wrote Wednesday.
On the ground, unilateral tariff onslaughts have never prevailed in US history. And they're killing our companies.
Foreign governments and security researchers say Beijing encourages and in some cases engages directly in theft of trade secrets.
"We're having a tremendous impact on China".
"We will make sure that all companies, be they Chinese- or foreign-owned, so long as they are registered in China, will be treated as equals", Li said.