Chinese firms unfazed by tariff challenge

On April 8, the United States government announced a steep increase in "reciprocal tariffs" on imports from China — raising them to 84 percent — and followed the move with additional measures, pushing tariffs on Chinese goods as high as 245 percent. These aggressive and unilateral moves mark a turning point in globalization, adding uncertainty to the global economy, raising costs for market entry and fueling trade tensions.

Initially, the tariff hikes indeed posed serious challenges for some Chinese exporters, causing declining orders and shrinking profit margins. However, Chinese enterprises responded swiftly.

By boosting investment in research and development and upgrading their product lines, numerous firms have begun to successfully move up the value chain, making their exports less price-sensitive. Meanwhile, companies have expanded into emerging markets, especially those participated in the Belt and Road Initiative, thereby reducing dependence on the US market.