Notes from China: Tariffs are Having an Impact

It has been some time since we shared comments from one of our trading friends located in China. There have been significant changes in the Chinese steel industry, and the U.S. tariffs on China are having an impact, according to our source. Here is what he had to say:

“The Chinese market has not flexed its muscles in a long time, and there is more and more overseas investment by the Chinese to try and dodge global tariffs on Chinese-produced steel and downstream products. If you follow the Asian news, it is more evident of Taiwanese, Korean, Japanese investments in China that are withdrawing on a large scale and relocating to Vietnam, Cambodia and their own home country. The largest Taiwanese factories in China have closed up shop, or are in the process of doing so, and are moving investment back to Taiwan as the Taiwanese government is providing huge incentives for relocation back to the island.