Chinese companies find a way to escape Trump tariffs

Chinese manufacturers appear to have found an unexpected but useful solution to avoid the heavy tariffs imposed by US President Donald Trump on Chinese goods. According to Bloomberg news agency, they are now looking for a way to supply their products to the American market through Indian exporters.

According to Ajay Sahai, director general of the Federation of Indian Export Organizations, at the recent Canton Fair in Guangzhou, several Chinese companies approached Indian manufacturers and offered to help them ship goods to the US. It was reported that they were offered a good commission in return for this service.

While the US government has imposed high tariffs of up to 145 percent on many Chinese goods, only 10 percent tariffs are applied to products imported from India. In this situation, it will be much more profitable for Chinese exporters to trade through Indian companies.

Previously, Chinese companies had planned to open production plants in Vietnam or deliver their products through Thailand to enter the US market. However, Donald Trump put a stop to this and imposed a 46% tariff on Vietnamese products. This forced Chinese companies to turn to a new partner - India.

There is also another serious problem for Chinese exporters: the Indian government maintains restrictions on Chinese investment in the country. This may make it somewhat difficult for them to do business in India or export products through this country.

According to experts, the main offers from the Chinese relate to the sectors of hand tools, electronics and household appliances. According to Siddhant Aggarwal, a representative of the Indian company OayKay Tools, which is engaged in the production of export products, they are also negotiating with Chinese and American partners.

If this plan is implemented, Chinese manufacturers will be able to import their goods at relatively favorable tariffs to the US and retain their large profits. At the same time, Indian exporters will also be able to strengthen their position in the US market and thereby earn additional income. Read 'Zamin' on Telegram!