In a violation of WTO rules, Washington has finally pulled the trigger on its trade war against China. The largest ever trade war in economic history is sure to bring damage not only to free trade and globalization, but also to multilateral trade systems and the global industrial chain.
At present, affected small- and medium-sized enterprises in China are actively preparing for counter measures, wishing to cut losses as much as possible.
The impact of the trade war is already obvious. The number of orders received by a track equipment manufacturer in eastern China’s Jiangsu province has already plunged over the first half of this year.
“Our preparation to enter the U.S. market started last year, and we have passed all certifications,” said Huang Qiguo, manager of the Jiangsu company. “However, the unfavorable factors (trade war) this year have increased customer concern,” he added.
Faced with such a situation, Chinese enterprises have to seek new markets and make more high value-added products to balance their losses. An overseas sales manager of Zhongke Optic-Electronic Color Sorter Machinery Co., Ltd. said that they will expand their business to more emerging markets such as Southeast Asia and Belt and Road countries.
China’s small- and medium-sized enterprises are now sure of themselves in regards to technological input, human resources and management, said Zhang Jingqiang, executive director of the China Association of Small and Medium Enterprises. They are advancing technologies and lowering costs to cope with the trade friction, he added.