Chinese Manufacturers Relocating Operations to Other Countries to Avoid Tariffs on Exports - Forex News by FX Leaders
Made in China relocating?

Chinese Manufacturers Relocating Operations to Other Countries to Avoid Tariffs on Exports

Posted Thursday, June 27, 2019 by
Arslan Butt • 1 min read

A few days ago, we wrote about how Vietnamese customs were planning to clamp down on Chinese manufacturers importing and repackaging their products before sending them to US and European markets in a bid to avoid tariffs. While that story only explored illegally repackaged products, there are some Chinese manufacturers moving their operations outside the country to bypass the hiked tariffs.

As Trump continues to hike tariffs on Chinese manufactured goods, companies are considering relocating to alternate, cheaper locations like Myanmar, Vietnam and Cambodia. In addition to the ongoing tariffs war, higher wages and a labor crunch in China have fueled this decision for relocation.

Cheap and abundant labor makes Myanmar an attractive destination for Chinese companies looking to avoid tariffs and maintain their bottom lines. According to data from the country’s Directorate of Investment and Company Administration, in the 12 months till April 2019, Chinese projects have invested $585 million in Myanmar, fueling a significant expansion of its industrial sector.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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