Chinese exporters scramble to cope with U.S. tariffs

Chinese exporters were scrambling Monday to cope with a plunge in U.S. sales, while China’s state press shrugged off the impact of Washington’s tariff hikes in a spiralling technology dispute.

The overall blow from Friday’s tariff hikes to the world’s second-largest economy should be limited, according to privatesector analysts. But U.S. President Donald Trump’s measures targeting Chinese medical, construction and factory equipment hit exporters that say price-conscious American customers have stopped buying.

The general manager of a medical device exporter that makes 15 to 20 per cent of its sales to the United States said he plans to fly there this week to negotiate with customers who stopped ordering its syringes and other equipment.

Wuxi Yushou Medical Devices Co., Ltd., with a workforce of 500, stands to lose 30-40 million yuan ($4.5 to $6 million U.S.) in annual revenue, according to the manager, Miao Liping.

Without new orders, “I will suspend making the products,” said Miao. “It is not easy for us to compete with low-end products in other countries.”

Other exporters of goods from kitchen appliances and lighting to toys and tools have reported similar drops in U.S. orders.

The state press tried to downplay the impact on China, emphasizing what Beijing says will be the bigger blow to American consumers who will pay more for Chinese goods.

China can find other suppliers for soybeans and other American goods hit by its own retaliatory tariffs, state media said. “Added tariffs basically have no effect on companies,” the chair of one of China’s biggest chemical companies, state-owned Sinochem Group, Ning Gaoning, told the website aweb.com.

Despite official bravado, the conflict adds to mounting economic challenges for Beijing.

Growth already was cooling after regulators tightened controls last year on bank lending to cool surging debt.

Trump raised tariffs on $34 billion of Chinese goods in response to complaints Beijing steals or pressures foreign companies to hand over technology.

More broadly, American officials worry Chinese government plans such as “Made in China 2025,” which calls for creating competitors in robots, biotech, artificial intelligence and other fields, might erode U.S. technology leadership and prosperity.