US-China trade war: The countries caught in the crossfire

 US-China trade war: The countries caught in the crossfire

US-China trade war: The countries caught in the crossfire

Other Asian economies are intricately linked to China’s fortunes, through their highly connected supply chains. And what hurts Beijing can also hurt countries further afield, like South Korea, Taiwan – or Singapore.

On the outskirts of the central business district in Singapore, the steady hum of machines producing speakers and air fresheners for customers around the region reverberates through one factory.

The business was set up by Joyce Seow’s dad in the 1970s. Poh Eng Seow was a floor manager at the time for a factory run by a multinational firm in the country.

US-China trade war: The countries caught in the crossfire

US-China trade war: The countries caught in the crossfire

When the multinational pulled out, he decided to keep servicing his Western clients, and started the operation with just seven people on the factory floor.

Today, Watson EP Industries has more than 350 people on its books. It also has factories in China and Vietnam, and an annual turnover of $40m (£31m).

US-China trade war: The countries caught in the crossfire

US-China trade war: The countries caught in the crossfire

Mr Seow credits opening the facility in China in the early 2000s as the reason for the spectacular growth of his firm.
“To do business in China is an education,” he tells me, chuckling. “You must learn how to do things the right way. Better to hire a local consultant!”

But now China could also be the reason why this family-run firm could be put in jeopardy.

Joyce and her dad have only recently found that the speakers they make in their Chinese factory could see a 25% tariff placed on them when they are sold in the US. Speakers are on the most recent list issued by Washington that targets $200bn worth of Chinese goods.

The tariffs have yet to come into effect – in fact, they are currently only under consideration – but both Joyce and her dad are extremely worried about the impact on their company. More than half of their business in China consists of producing speakers for the US market.

US-China trade war: The countries caught in the crossfire

“We are very disappointed, and in a lot of discomfort in not knowing what lies ahead,” Joyce tells me as she looks through the list of goods.

Source: BBC

18 thoughts on “US-China trade war: The countries caught in the crossfire

  • The other day, while I was at work, my cousin stole my iPad and tested to see if
    it can survive a twenty five foot drop, just so she can be a youtube sensation. My iPad
    is now destroyed and she has 83 views. I know this is totally off
    topic but I had to share it with someone!

  • I am not sure where you are getting your information, but great topic.I needs to spend some time learning more or understanding more.Thanks for wonderful info I was looking for this information for my mission.

  • First off I want to say fantastic blog! I had a quick question which I’d like to ask if you
    do not mind. I was curious to know how you center yourself
    and clear your head before writing. I’ve had trouble clearing my mind in getting my thoughts out there.
    I truly do take pleasure in writing however it just seems like the first 10 to 15 minutes are generally wasted just
    trying to figure out how to begin. Any ideas or hints?
    Many thanks!

  • Admiring the hard work you put into your website and detailed information you present.It’s awesome to come across a blog every once in a whilethat isn’t the same old rehashed material.Wonderful read! I’ve bookmarked your site and I’m including your RSS feeds to my Google account.

  • Hello There. I found your blog the use of msn. This is a very neatly written article.I’ll be sure to bookmark it and return to read extra of your useful info.Thanks for the post. I will definitely comeback.

  • Hi everyone, it’s my first pay a quick visit at this site, and paragraph
    is truly fruitful in support of me, keep up posting these types of articles
    or reviews.

  • This is a really good tip particularly to those fresh to the blogosphere.

    Brief but very precise info… Many thanks for sharing this one.
    A must read post!

Leave a Reply

Your email address will not be published. Required fields are marked *