The impact of a trade war on manufacturing

There is a close relationship between trade wars and manufacturing. When it comes to manufacturing, China is an industrial superpower that straddles the lower,  middle, even high tiers.

China's demand for Fasteners has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, imports & exports, consumer consumption and capital investment for over two decades. 

Today, China has a huge market in the world. Tremendous fast-growing markets for imports and business opportunities for companies around the world. If you want to expand your business in China, International Fastener Show China shall be a tremendous opportunity.

From the perspective of enterprises, trade disputes have an impact on some export-oriented enterprises, bringing about increased costs, declining orders and other problems. Enterprises are faced with the challenges of production reduction, closure of business, adjustment and restructuring. Electronic communication, electrical machinery, wood processing, chemical products and other industries are relatively affected.

The outbreak of trade frictions between China and the United States has not only affected China's direct exports, but also led to the emergence of related manufacturing industries on the list of tariffs, which further hurt the export volume.

At the same time, the tariffs have led both sides and related upstream and downstream companies to seek new supply chain relationships.

A greater impact on Indirect exports of fastener products 

The impact on direct fastener products is basically controllable, and the development of the fastener industry has enough strength, not only "strength" and "toughness", in the international fastener market has an irreplaceable position.If the tariff is 20%, the proportion between the supplier and the supplier will have little impact. If the tax is 25%, there will be risks and the transaction will be difficult.

The indirect export of fasteners is basically included in the us $530 billion export to the United States, accounting for 50.2% of the orders for mechanical and electrical products and white goods products. In terms of the fastener industry, the export of these products is blocked, which is reflected in the reduction of domestic demand and has a greater impact.

The conclusion of the first economic and trade agreement between China and the United States is a transition from tension to relaxation of china-us economic and trade relations. We are full of confidence and expectations for the broad prospects of china-us economic and trade relations in the future. 

Anyway, the pursuit of a stronger nation for International Fastener Show China shall be fulfilling with your participation. 

To be continued...