After Donald Trump, who has insisted on raising tariffs on China, won the presidential election, some companies began to withdraw from China.
According to the French International News on November 11, after Trump's victory in the US presidential election, some companies withdrew from China and began to move to Southeast Asian countries. This is because after Trump returns to the White House, he will once again impose high tariffs on Chinese products.
During the campaign, Trump threatened China with tariffs of more than 60% on Chinese-made goods, which is much higher than the 7.5% to 25% tariffs imposed on China during Trump's first term. Trump, who won the presidential election, announced during his election campaign that he would like to impose a 10% to 20% tariff on all products entering the United States, especially over 60% on imported products made in China. Trump's plans to raise tariffs will be a big risk and blow to China, the world's second-largest economy.
To avoid US tariffs on Chinese-made products, some Chinese companies have begun moving to Southeast Asian countries. Southeast Asian countries such as Thailand, Vietnam and Malaysia, which have important industrial areas producing cars and electronic equipment, are beginning to make way for factories to be relocated from China.
During Trump's first term, he tried to rebalance the US's bilateral trade deficit with China by forcing China to negotiate more purchases of US goods. The agreement, which was signed in January 2020, was based on China buying US goods and services worth $200 billion in 2020 and 2021.