Analysis: Tariffs on Chinese Exports Would Hit Many Non-Chinese Companies
May 22, 2018 | PRNewswireEstimated reading time: 1 minute
Amid ongoing global trade negotiations, new research revealsthat about 43% of China's exports come from non-Chinese companies. As a result, applying certain tariffs on Chinese exporters would not only impact the country's indigenous exporters, it would also impact foreign companies – including many U.S. companies – with a manufacturing footprint in China. The findings come from the China Center at The Conference Board.
As the first chart details, the export share of foreign-invested enterprises (FIEs) in China has experienced a gradual decline but remains substantial, accounting for approximately 43%.
Moreover, if proposed U.S. tariffs (Section 301) were to take effect, China's foreign-dominated Information and Communications Technology (ICT) manufacturing sector would be hit the hardest. Among all the sectors that export from China, ICT has the highest share of foreign participation. As the second chart details, FIEs account for approximately 79% of exports in this space. ICT goods include products such as computers, flat screens, and smart phones.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
About The Conference Board's China Center
The Conference Board China Center provides relevant, practical and readily useful business and economic insights and information to senior executives of member companies with a significant strategic interest in China. Our insights are informed by pioneering local economic and business research, formulated by our thought leaders in China and around the world, and delivered through our exclusive Conference Board events, publications, indicators, and peer-group CEO Council sessions in China.
Suggested Items
Mycronic Releases Interim Report January–March 2024
04/18/2024 | MycronicNet sales increased 39 percent to SEK 1,692 (1,219) million. Based on constant exchange rates, net sales increased 42 percent.
Global Semiconductor Sales Increase 16.3% Year-to-Year in February
04/04/2024 | SIAThe Semiconductor Industry Association (SIA) announced global semiconductor industry sales totaled $46.2 billion during the month of February 2024, an increase of 16.3% compared to the February 2023 total of $39.7 billion but a decrease of 3.1% from the January 2024 total of $47.6 billion.
Global Sourcing Spotlight: Don’t Be Afraid of Global Sourcing
04/03/2024 | Bob Duke -- Column: Global Sourcing SpotlightOn paper, it doesn’t seem like a great time for global sourcing. With several world conflicts, it may seem impossible to think that something like global sourcing and commercial trade between countries could begin to alleviate this tension between warring countries. But hey, I’ve always been a glass-half-full guy, so humor me. While trade between countries can indeed foster cooperation and contribute to peace in several ways, it's essential to recognize that it's not a panacea for all global issues. However, here are some ways in which trade can contribute to peace and global stability.
Management Change at Mycronic
03/19/2024 | MycronicAs a result of the preparations ahead of a possible listing of Axxon on a stock exchange in China, effective March 19, 2024, Ivan Li leaves Mycronic’s executive management but remains as Head of Axxon, the core of Mycronic´s High Volume division.
IMI China (Jiaxing) Receives Five Invention Patent Awards
03/13/2024 | IMIIntegrated Micro-Electronics, Inc. (IMI), China (Jiaxing) Test and Systems Development (TSD) team recently received five National Invention Patent awards from the China National Intellectual Property Administration (CNIPA).