The trade war arrives at foreign companies in China with double rates

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Foreign manufacturers in China pay 125 percent functions to import components, and then 145 percent to export to the United States, as the Donald Trump Martella trade war their operations.

International companies and joint companies represent almost a third of China’s total trade, according to official data, which makes it clear to the scope of their exposure to rates.

Large North -American companies like Apple and Tesla and many smaller producers trust China as a basis for manufacturing. These companies often matter raw materials or US components for the assembly of products that are exported later.

This is exposed to the possibility of paying both north -American and Chinese on the same goods, according to economists, after Trump scored sharply taxes on all Chinese exports to 145 percent, leading Beijing to retaliate.

“Foreign companies are taking advantage of the Chinese market,” said Heiwai Tang, director of the Asian Global Institute at Hong Kong University. “If they matter, they pay Chinese rates. When they export to the United States, they pay US rates.”

“They are hit twice.”

Companies totally or partially of foreign ownership of the country were $ 980 million of China exports last year, or more than a quarter, and $ 820 million, or more than a third, data from the General Administration of Customs and China calculations by financial times. China recorded a commercial surplus of record of Almost 1 tn $ Last year.

China’s export machine was built at the rear of foreign and partially foreign property companies, including those of Hong Kong and Macau, who sought to take advantage of the country’s huge labor market and low cost to manufacture goods.

Companies invested abroad, as they are called in China, represented 55 percent of the country’s total trade in 2008.

This quota has fallen over the years, as China has developed a more aggressive policy of industrial self -sufficiency. But companies invested abroad still represented 29.6 percent of trade worth the dollar last year, according to Government figures.

It was represented only 16 percent of China’s commercial surplus last year, but because the number of exports of foreign companies was offset by its greatest part of total imports.

“There are several foreign companies operating in China that are not American, but are based on North -American contributions and, therefore, are also affected,” said Michael Hart’s President of the North -American Chamber of Commerce. China’s Ministry of Commerce is Given the exemptions of rates for some sectorsHart said.

China grants some exemptions from its customs rights for companies that matter components and raw materials for goods that will be re -exported, which is known as the “processing trade”.

Some older -older Americans, including smartphone manufacturers and some electronics producers, also have won temporary exemptions of Trump.

But with the trade war, many foreign companies may still be prohibited to export from China, especially smaller producers.

Jacob Rothman, CEO of Velong Enterprises, based in China, which causes kitchen and domestic products to China to sell by American retailors, including Walmart, said that Tritan, a plastic form, of the Eastman company, based in the United States.

“They affect us with the double rates of products with this material,” Rothman said. “Once when the material matters and again, when you export the goods finished.”

He said China had granted a fare exemption if the final product was again exported to the United States in a certain period of time. But China did not grant the exemption if the product was exported to different countries in the United States.

Economists warned that the trade war could cause more drop in direct direct investment in China, which decreased 27.1 percent by 2024 a year earlier in terms of Renminbi, according to the Ministry of Commerce figures.

“For those who enter China to serve the Chinese market, they can still come. But if your goal is to serve other markets, especially in the United States, it will hurt you a lot,” said Qiu Dongxiao, head of the Hong Kong University Lingnan University Department of Lingnan University, “so you need to reconsider your global strategy.”