The trade war initiated by the President of the United States against China and other countries is causing negative consequences for economies worldwide, including the United States itself. However, European manufacturers in China are already experiencing, or will soon experience, a positive effect from this situation.
This is reported by Finway
In particular, the increase in tariffs on American goods in China makes imports from the U.S. less competitive, opening new opportunities for European companies. As noted by Financial Times, this conclusion was reached by analysts at the EU Chamber of Commerce in China.
Benefits for European Manufacturers
According to the study, European manufacturers in China have the opportunity to capture market share left by American firms. Already, 19% of European companies in China reported an increase in orders from Chinese or foreign clients, while 36% expect to benefit from the trade war.
“We have many examples where European companies compete with American ones, especially in the area of imports from the U.S. American supplies are decreasing, and China is looking for alternatives among non-American residents. This could be an advantage for European companies,” said Jens Eskelund, President of the European Chamber of Commerce.
Economic Challenges
However, as Eskelund emphasized, this does not guarantee significant profits for EU businesses. The overall economic slowdown and uncertainty continue to affect the profitability and investment plans of European companies.
Despite China remaining a global leader in exports, foreign companies, including American ones, continue to play an important role in foreign trade, especially in supplying high-tech equipment and industrial components. Such companies account for about 30% of the value of China’s foreign trade, using imported components to produce goods for both the domestic market and for export.