Trump tariffs and China: Businesses brace for impact

This has not happened overnight, says Kenny Yao from AlixPartners, who advises Chinese firms on how to deal with tariffs.

During Trump’s first term, many Chinese firms doubted his tariff threat, he told the BBC. Now they ask if he will follow the supply chain and slap tariffs on other countries.

Just in case he does, Mr Yao says, it would be wise for Chinese businesses to look further afield: “For example, Africa or Latin America. This is more difficult, but it is good to look at areas you have not explored before.”

As America pledges to look after itself first, Beijing is doing its best to appear a stable business partner, and there is some evidence it is working.

China has edged past the US to become the prevailing choice for countries in South East Asia, according to a survey by the Iseas Yusof-Ishak think tank in Singapore.

Even though production has moved abroad, money still flows to China – 60% of the materials being made into clothes at Mr Huang’s factories in Phnom Penh come from China.

And exports are thriving, with Beijing investing more heavily in high-end manufacturing, from solar panels to artificial intelligence. Last year’s trade surplus with the world – on the back of a nearly 6% year-on-year jump in exports – was a record $992bn.

Still, Chinese businesses – in Jiangsu and Phnom Penh – are preparing themselves for an uncertain spell, if not a turbulent one.

Mr Peng hopes the US and China can have an “amicable and calm” discussion to keep the tariffs “within a reasonable range” and avoid a trade war.

“Americans still need to purchase these products,” he said, before driving off to meet new customers.