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Home / Opinion / From the Press

US companies losing opportunities because of tariff war

China Daily | Updated: 2019-09-17 07:49
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百度 “部分地区天气炎热、降水偏多,不利于鲜菜生产和储运,使鲜菜价格比上月上涨%,影响CPI上涨约个百分点。 百度   (王震李苗苗)  帕其英也尔村6组村民肉孜·阿卜杜吾普尔的家庭面貌今非昔比。 百度 加征关税后,美进口商或者选择继续自华进口,但在分摊成本后必然需要将增加的成本向下游供应链传递,引起美国生产制造商品竞争力下降;或者选择从其他国家进口同类商品,需要解决的问题并不限于由此大概率带来的成本上升,还必须解决缺乏商业信任基础、产品质量、供货周期不确定等诸多问题。 百度 富锋镇 百度 古新路 百度 郜鼎集乡

Editor's note: Some US officials recently claimed that the tariff policy adopted by the United States is dealing a heavy blow to China's economy since foreign investment is leaving China, but the fact is that foreign investment continues to flow into China, and even the investment of US companies continues to increase. 21st Century Business Herald comments:

Statistics show that from January to July 2019, a total of 24,050 new foreign-funded enterprises were set up nationwide, and foreign capital actually used reached 533.14 billion yuan ($83.4 billion), up 7.3 percent year-on-year. Against the backdrop of rising global protectionism and slowing global growth, the influx of so much foreign capital shows China's attractiveness to foreign investment.

The US has been trying to force its overseas companies to return home by imposing tariffs, but its investment in China still keeps increasing. For example, Suzhou, East China's Jiangsu province, the largest recipient of foreign investment in the first half of this year, introduced 33 US-funded projects and 29 US-funded enterprises increased their investment in the first seven months of this year.

The US has chosen the wrong time to wage a tariff war against China. China has transformed from an export-dependent economy to a domestic demand-driven one, with consumption accounting for more than 60 percent of GDP. China's middle-class population of more than 400 million who are upgrading their consumption are also generating fast-growing demand for US goods and services. Besides, China has been promoting higher-quality development and transformation and upgrading of its industry and services, which will also provide more opportunities for foreign companies, including those from the US.

At a time when China is undergoing technological change for high-quality development and the Chinese market is greatly increasing demands for US enterprises, the trade war launched by the US is preventing its enterprises from gaining more market share and opportunities in China. No wonder US companies are still increasing their investment in China. The uncertainty created by the US trade attack on China has not only hurt US companies' investments, but will also cause them to lose their advantages in China.

The US has no advantages any more to develop manufacturing, so its attempt to force its manufacturing enterprises to return home will not achieve expected effects, and what the US' tariff policy really hurts is the interests of its own companies.

  
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