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Chinese manufacturers rethink South-east Asia pivot after Trump’s tariffs
Narrow difference between duties on China and alternative hubs make costs of relocating less appealing, producers say.
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Visitors at Yangshan Port outside of Shanghai, China. Many Chinese companies said they had been wrong-footed by the increased rates in South-east Asia.
PHOTO: REUTERS
William Langley
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Chinese exporters are reconsidering investment in offshore factories as US tariffs on alternative hubs and new restrictions on “transshipment” force a sweeping rethink of supply chains in Asia.
Manufacturers have poured billions of dollars into South-east Asia in recent years as part of a “China Plus One” strategy to minimise their exposure to US tariffs in the wake of US President Donald Trump’s first trade war with Beijing.
