China Facts: Risk on the trade risk is overall relatively limited but has substantial impact on certain sectors



The profile of both the US and Chinese economies suggest that the risk that either will be derailed by higher tariffs and a slowdown in trade may be relatively limited. Both economies are large and domestically driven. The trade dispute will, however, have a substantial impact on specific players, value chains and regions with high exposure to tariff changes. About half of the $250bn tariffs during the initial two rounds imposed by the US on China are on electronics or machinery - and foreign firms produce 87% of electronics in China, and 60% of machinery. About 40% of China's exports are from foreign-owned enterprises and joint ventures. According to a recent survey from Amcham in China found that 31% of US respondents were already delaying or canceling investment decisions, 18% were considering relocating some or all of their manufacturing outside China, and 3% were even thinking about exiting the China market altogether. *)  


*) McKinsey Global Institute December 2018
















Share on Facebook
Share on Twitter
Please reload

  • Facebook Basic Black
  • Twitter Basic Black
  • Black Google+ Icon
Please reload

Search By Tags:
Hans Henrik Pontoppidan
Secretary General, DCBF 
Who's Behind The Blog


Danish-Chinese Business Forum

Address: Tingskiftevej 5,

DK-2900 Hellerup

Phone: +45 33 32 97 78


CVR: 29 05 16 31

The views expressed of the authors do not necessarily represent or reflect the views of DCBF.