The Sino-US trade war is currently in full swing. The USA increased custom tariffs for many types of Chinese products. In response, China also increased custom tariffs for many types of US products. The two parties will begin a new round of trade negotiations next month. The Sino-US trade war has an enormous impact on the global market and many people are therefore closely following news on the trade negotiations.
Chinese import companies are directly affected and the impact of the trade war is clearly visible. Many representatives for Chinese import companies stated that they are still importing from the USA, but their import volume is significantly smaller. Some company representatives even stated that the custom tariff on some of their import products reached 50%.
In the end, the additional custom tariffs severely weaken the competitive position of US products in the Chinese market, but there are still customers willing to pay the additional cost. There still is a definite market demand for US products. The import of these products will therefore not come to an end, but the pace of trade will slow down. Furthermore, many Chinese import companies are turning their attention to other countries that could replace the USA and satisfy Chinese market demand for certain products."
"The Sino-US trade war does have an impact on our business, but in the end the influence remains extremely limited. First, we have a large variety of fruit to choose from, such as durian, coconuts, mangosteen, and dragon fruit from Southeast Asia, oranges and grapes from Australia, and apples from New Zealand.
The products we import from the USA only count for one part of our business. The cost price of import products rises as a result of the Sino-US trade war and we are considering alternative suppliers. We will shift towards alternatives when the time is right, so that we can guarantee both product quality and optimum price for our customers in the Chinese market. Second, the latitude of China and the USA is not that different and the production seasons are quite similar. Chinese market demand for off-season fruit from Australia is much stronger than demand for fruit imported from USA during the production season in China. Third, the impact of the Sino-US trade war is even more limited in south China than in east China." This is according to Thomas Wang of Shenzhen Cool Chain Logistics Co., Ltd.
"This is the season when seasonal fruits arrive in large volumes on the domestic market. This is of course also a factor that impacts import trade, but this is how the market works. We are not worried about these market mechanisms. We have abundant experience in distribution. We introduced a new brand this year: Cool Chain Logistics. At the upcoming Asia Fruit Logistica in Hong Kong we hope to promote our distribution services for clients interested in import to the Chinese market. We take this opportunity to showcase our excellent and efficient distribution services. And we warmly welcome all visitors to Asia Fruit Logistica at our stand, P36 in Hall 3."
For more information:
Shenzhen Cool Chain Logistics Co., Ltd.
Tel.: +86 755 8608 0391