Chinese companies purge supply chain of foreign parts amid US trade war

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Chinese companies accelerate the cleansing of foreign components of their supply chains, as they threaten trade tensions with the United States to accelerate the separation of the economy in the world.

In the weeks that have passed on president Donald Trump, President Donald Trump told China with very declining definitions, and he told more than twenty companies listed in Shanghai and Shaftnchin investors that they are increasing the efforts made to benefit local inputs to replace foreign products or is expected to benefit from the purchase of their translated peers.

The financial deposits, which were reviewed by the Times, were issued by companies that extend to sectors of semiconductors, chemicals and medical devices. They explain the possible permanent impact of Trump’s trade war by influencing permanent rearrangement of supply chains.

Beijing has long prompted artificial self -sufficiency with policies called China 2025 and the strategy of President Xi Jinping “double trading”, which aims to enhance economic independence while preserving selective global relations.

This campaign was shipped through the Trump tariff, which created more motivation for Chinese companies to try to isolate themselves from the geopolitical reaction, as well as through the reprisals of Beijing on imports from the United States, which reaches 125 percent.

The customs tariff will only increase Beijing’s desire for Chinese companies to become more self -sufficient. She added, “It is clear that they are urgent.” This will indicate them to the acceleration as possible.“

People familiar with Chinese officials said that Beijing considered the commercial conflict as the validity of self -reliance policies. They added that officials believe that such initiatives had prepared China to overcome the latest wave of US pressure.

“They believe that China can now survive without anything from the United States or the West and gave the country the power to resist Trump’s commercial demands,” said one of the people.

Estun Automation, one of the leading industrial robot makers in China, told its annual report last month that it “quickly acquired the main customers who had previously had foreign brands” in addition to improving its supply chain “to increase the local replacement of raw materials.”

One of the managers of the company said. “[It’s] Not only the trade war – the entire global economy is unstable. We want to be able and ready to switch [suppliers]They said.

China Harzone Industry Corp, owned by Cloy Harzone Rately Corp, told investors last month that although it was “already enhanced by a local replacement” for years, in response to tariffs, it would raise its share of local suppliers to replace a handful of ingredients that are still confiscated by North America.

The company added that it will also develop a double trading model that focuses on exports to Southeast Asia, Africa and South America.

Some analysts argued that the Made In China 2025 plan, which was launched in 2015, helped stir the trade war during the first period of Trump by setting clear goals for local companies to control the strategic sectors.

A recent report issued by the European Union Chamber of Commerce in China said that the policy has succeeded in industries such as electric cars, shipbuilding and railway equipment – as she is leading Chinese manufacturing now – but it has warned that it also encouraged ineffective investment and efficiency in some sectors and took tensions with commercial partners.

The promotion of a strengthening China to determine the priorities of local sources can affect suppliers in the third countries.

Thinkon Semiconductor, a LiONING -based silicone provider, told investors that it would cut foreign suppliers to “increase risk elasticity”. The company manager said that it does not import American products and was working to replace chemical reagents from Japan, South Korea and Europe.

“To avoid more risks, we will continue to enhance our localization efforts,” said the person, asking not to be named.

Estuun Automation and Thinkon SemiDuctor did not respond to the suspension requests.

Ho Zhixing, who works for companies in the company of the company Hunan Technology Corp in the central province of Hunan, said the Chinese retaliatory definitions were driving manufacturers to give up American bearings used in steam and gas turbines.

He said: “They are communicating with us, and they ask us for slope production.”

“Now, everyone talks about replacement,” added. Long -term predicts, many customers will turn forever. “It will be a gradual replacement process.”