Why American companies must import goods from China

Why American companies must import goods from China

It is not easy to find alternatives in the world that are comparable in quality to those produced in China. A large number of local companies in the United States have requested to abandon plans to impose a 25% tariff on US$300 billion in Chinese imports.

The Wall Street Journal reported on June 17 that for many US importers, they have no choice but to China. Stephen Pelkey, chief executive of Atlas PyroVision Entertainment, a fireworks show company, said he had tried to find alternatives in the world that could match the quality of fireworks produced in China, but failed. If he can get the fireworks materials he needs from American companies, that would be great, but such companies simply don’t exist. US President Donald Trump said that a new round of tariff measures is needed to force recalcitrant China to end unfair trade practices while increasing the competitiveness of US manufacturers. However, many American business owners do not agree with this approach.

According to federal import data, commodities affected by the new tariffs include 273 types of Chinese imports, such as fireworks, fishing reels, and electric blankets. Last year, such goods imported from China were worth $66.3 billion. The G20 summit at the end of June did not bring hope to the end of the tariff war, and at most it resumed trade negotiations. This is the signal that US Secretary of Commerce, Wilbur Ross, released on June 16. Ross said: “Even the real war will end with negotiations, and the current situation will eventually end with negotiations. As for 10 minutes, 10 weeks, 10 months or more, we can’t judge.” In the textile and apparel industry It is difficult to find American textile mills or dye factories that can purchase fabrics because they have stopped operating. Including some craftsmen who are engaged in the handicrafts of handicrafts, it is also difficult to find them in the United States. For example, the internal mechanical structure of the Christmas tree-themed wall clock, or the intricate and detailed picture on the porcelain statue. In the United States, few people are willing to engage in this fine manual work on products for the middle class.

The G20 summit at the end of June did not bring hope to the end of the tariff war, and at most it resumed trade negotiations. This is the signal that US Secretary of Commerce, Wilbur Ross, released on June 16. Ross said: “Even the real war will end with negotiations, and the current situation will eventually end with negotiations. As for 10 minutes, 10 weeks, 10 months or more, we can’t judge.” In the textile and apparel industry, It is difficult to find American textile mills or dye factories that can purchase fabrics because they have stopped operating. Including some craftsmen who are engaged in the handicrafts of handicrafts, it is also difficult to find them in the United States. For example, the internal mechanical structure of the Christmas tree-themed wall clock, or the intricate and detailed picture on the porcelain statue. In the United States, few people are willing to engage in this fine manual work on products for the middle class. Regalo International LLC, a baby safety door and bed guard manufacturer in Minnesota, said the government’s tariff threats 18 months ago prompted them to find new production partners in Mexico and other overseas countries that may have large amounts of cheap labor. Although Vietnam can handle orders for wood products and textiles, “the infrastructure in metal processing is very weak”. On the whole, Vietnamese factories cannot match China’s prices or can’t keep up with production requirements. The gap between Vietnam and China is too great. In New Hampshire, Atlas PyroVision produced its own fireworks. However, due to rising costs, the company had to close its factory in 1995, and now almost all rely on imports from China for city fireworks displays.

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