BEIJING: European companies in China have been able to minimise the effect from the tariff war between Beijing and Washington, although some are considering relocating their businesses, the EU Chamber of Commerce said Monday (Dec 9).
The world's two biggest economies have been entangled in a lingering trade war for over a year, which has weighed on the global economy and resulted in hundreds of billions of dollars in punitive tariffs slapped on two-way trade.
European companies in China "have effectively negated the tariff effects in a relatively short space of time," said the president of the EU Chamber of Commerce in China, Joerg Wuttke.
Many companies have "effectively side-stepped" the steep tariffs by rejigging their supply chains and leveraging their global corporate networks, the chamber said in a statement.
According to a survey of its members released Monday, 64 per cent of respondents said they have not noticed "any change" in their business as a result of the trade war.
Another 10 per cent said they were "completely affected" by the trade war.
However many European companies said they expected the trade war to be "long-lasting", and 10 per cent have already changed suppliers.
At the time of the survey, another eight per cent had already relocated parts of their business out of China or were planning to do so – mainly to elsewhere in southeast Asia — while 15 per cent had delayed investment or expansion decisions because Read More – Source