China firms: U.S. importers not buying
Medical, construction, factory goods targeted
BEIJING — Chinese exporters were scrambling Monday to cope with a plunge in U.S. sales while China’s state news media shrugged off the impact of Washington’s tariff hikes.
The impact of Friday’s tariff hikes on the world’s second-largest economy should be limited, according to private sector analysts. But 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 percent of its sales to the U.S. said he plans to fly here this week to negotiate with customers who stopped ordering its syringes and other equipment.
Wuxi Yushou Medical Devices Co., with a workforce of 500, stands to lose $4.5 million to $6 million in annual revenue, according to manager Miao Liping.
Without new orders, “I will suspend making the products,” Miao said. “It is not easy for us to compete with low-end products in other countries.”
Other exporters of goods, such as kitchen appliances, lighting, toys and tools, have reported similar drops in U.S. orders.
The state media tried to downplay the impact on China. China can find other suppliers for soybeans and other American goods hit by its own retaliatory tariffs, state media said.
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 limit surging debt. That spooked investors, who have driven the main stock market index down 21 percent from its Jan. 24 peak.
The United States buys about 20 percent of China’s exports, but trade has shrunk as a share of the Chinese economy.
Still, the impact could spread as Chinese factory demand for components from Japan, South Korea, Taiwan and Southeast Asia slumps.
Meanwhile, China’s entirely state-controlled media have been ordered to avoid “aggressive language” in describing Trump, the South China Morning Post newspaper in Hong Kong reported, citing unidentified sources.
It said that might be intended to avoid antagonizing the American leader and hindering negotiations.