The United States protectionist policies and tariff hikes have prompted many Chinese businesses to accelerate their overseas expansion and implement effective risk-mitigation measures to sustain growth, said exporters and trade experts on Tuesday.
They made the comments after US President Donald Trump recently announced a 25 percent import tax on all steel and aluminum shipments entering the country, ending previous exemptions for allies, including Canada and the European Union.
Prior to that, he announced 25 percent additional tariffs on Canadian and Mexican imports, which have been paused until March 1, along with an additional 10 percent duty on Chinese goods.
Having accumulated extensive experience in navigating international political and economic shifts over the past decade, Chinese exporters have adapted to challenges by implementing strategic adjustments, such as actively participating in international trade shows and building more partnerships with companies in emerging markets, said Sang Baichuan, dean of the University of International Business and Economics' Institute of International Economy.
For example, a delegation of business executives from over 30 Chinese companies, led by the China Council for the Promotion of International Trade, visited Kazakhstan last week.
With eight cooperation agreements inked in fields including energy and agriculture, during their stay in Kazakhstan, business leaders said this trip further demonstrates Chinese companies' commitment to diversifying trade partnerships and strengthening economic ties in various emerging markets.
Wu Junli, a delegation member and deputy chief economist with PetroChina Co Ltd, a unit of State-owned China National Petroleum Corp, said that energy cooperation between China and Kazakhstan in the oil and gas sector is highly complementary. The prospects for cooperation between the two countries in this area are enormous.
Chen Bin, deputy director of the expert committee at the Beijing-based China Machinery Industry Federation, said many Chinese firms, particularly in the automotive and machinery manufacturing sectors, have established new factories, representative offices and service branches in overseas markets while also increasing investment in innovation, leading to positive results.
Ningbo Haitian Holding Group Co Ltd, an exporter of chemicals, commodities and garments in Ningbo, Zhejiang province, has been heading in that direction.
The Chinese company has leveraged multiple cooperation mechanisms and trade deals such as the Belt and Road Initiative and the Regional Comprehensive Economic Partnership to actively participate in international exhibitions and establish more overseas offices in recent years, according to Ningbo Customs.
"We have already expanded our customer base in regions such as the European Union, Southeast Asia and the Middle East, and diversified our market structure to mitigate the risks of over relying on a single market," said Jiang Yan, the company's vice-president.
To deal with growing external challenges and uncertainties, John Quelch, executive vice-chancellor of Duke Kunshan University, in Kunshan, Jiangsu province, suggested that China redouble its efforts to increase trade with Global South countries, thus gradually reducing dependency on traditional markets.
The term Global South refers to nations primarily in Africa, Latin America, Asia and Oceania that are generally considered developing or emerging economies, according to the Beijing-based China Chamber of International Commerce.
"In addition, China needs to further stimulate domestic consumption if global tariff tensions slow international trade," said Quelch, adding that international trade is entering a dangerous "Wild West "era. Under such circumstances, weaker economies and smaller countries that rely more heavily on international trade are likely to suffer the most.
zhongnan@chinadaily.com.cn
