{"id":15100,"date":"2020-03-25T20:32:24","date_gmt":"2020-03-25T20:32:24","guid":{"rendered":"http:\/\/www.felana.com.mx\/eng\/countries-that-benefited-from-the-us-china-trade-war\/"},"modified":"2020-03-25T20:32:24","modified_gmt":"2020-03-25T20:32:24","slug":"countries-that-benefited-from-the-us-china-trade-war","status":"publish","type":"post","link":"https:\/\/www.felana.com.mx\/eng\/countries-that-benefited-from-the-us-china-trade-war\/","title":{"rendered":"Countries That Benefited From The US-China Trade War"},"content":{"rendered":"

It was a shocking wave across many industries when President Trump announced, last year, gradual tariffs for goods coming from China which caught many people off guard.<\/span><\/h4>\n

For the last 15 years, both the U.S. (with lower prices for consumers) and China (with a higher level of employment and technology transfer) benefited from their relationship, even though it is arguable to say that China benefited more. For years, U.S. businesses streamlined their operations and supply chains with China to maximize their profits; a heavy dependency and investment that created big exit barriers for people who wanted to migrate their manufacturing from China to other countries. Even though there is no clear answer if a company should move its manufacturing completely from China, slowly transitioning some products seems to be the best way to manage the risk. Many importers (especially the big ones) have a hard time finding vendors in other countries that can produce products as fast as China \u2013 which seems to be the biggest problem right now. Increased demand is one problem and lack of infrastructure is another problem that many developing countries face to keep up with the demand. If this hurdle is overcome by extensive government investment in infrastructure, we will see more companies switching their operations from China to other developing Intra Asia countries.<\/p>\n

The chart below, shown in %\u2019s, depicts where China steadily increased the market share in the last couple of years; especially in the last quarter of 2018. In this quarter, China saw a big spike because many importers wanted to beat the tariffs by importing more than the regular amount. As seen in the first quarter of 2019, China\u2019s percentage was down by 7.3% while other countries picked up 17.6% \u2013 which means many companies that were effected by the tariffs started switching their sources.<\/p>\n

Here are the countries that benefited the most from the U.S.-China Trade war:<\/span><\/h4>\n