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Analysis: Tariffs on Chinese Exports Would Hit Many Non-Chinese Companies
May 22, 2018 | PRNewswireEstimated reading time: 1 minute
Amid ongoing global trade negotiations, new research revealsthat about 43% of China's exports come from non-Chinese companies. As a result, applying certain tariffs on Chinese exporters would not only impact the country's indigenous exporters, it would also impact foreign companies – including many U.S. companies – with a manufacturing footprint in China. The findings come from the China Center at The Conference Board.
As the first chart details, the export share of foreign-invested enterprises (FIEs) in China has experienced a gradual decline but remains substantial, accounting for approximately 43%.
Moreover, if proposed U.S. tariffs (Section 301) were to take effect, China's foreign-dominated Information and Communications Technology (ICT) manufacturing sector would be hit the hardest. Among all the sectors that export from China, ICT has the highest share of foreign participation. As the second chart details, FIEs account for approximately 79% of exports in this space. ICT goods include products such as computers, flat screens, and smart phones.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
About The Conference Board's China Center
The Conference Board China Center provides relevant, practical and readily useful business and economic insights and information to senior executives of member companies with a significant strategic interest in China. Our insights are informed by pioneering local economic and business research, formulated by our thought leaders in China and around the world, and delivered through our exclusive Conference Board events, publications, indicators, and peer-group CEO Council sessions in China.
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