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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOne of China's alternate responses to tariffs.
The Financial Times on Thursday reported that a Temu seller based in the port city of Guangzhou had been building factories overseas, in countries such as Jordan, where the finishing touches were put on products before these were shipped to the U.S.
By altering the goods' "country of origin" in this way, the seller said that they would be able to avoid the duties on Chinese imports.
Experts told Newsweek that this strategy is neither new nor limited to independent exporters; rather, it is being implemented on a national scale with the collaboration of other countries.
"There is quite a bit of, shall we say, ingenuity in China's export practices," Nicholas Lardy, an expert in Chinese economic and trade policy, told Newsweek.
"They'll get some Jordanian to be the front guy, and the company that ships to the U.S. is going to sound like a Jordanian company, even though it may be owned 100 percent by a Chinese company."
By altering the goods' "country of origin" in this way, the seller said that they would be able to avoid the duties on Chinese imports.
Experts told Newsweek that this strategy is neither new nor limited to independent exporters; rather, it is being implemented on a national scale with the collaboration of other countries.
"There is quite a bit of, shall we say, ingenuity in China's export practices," Nicholas Lardy, an expert in Chinese economic and trade policy, told Newsweek.
"They'll get some Jordanian to be the front guy, and the company that ships to the U.S. is going to sound like a Jordanian company, even though it may be owned 100 percent by a Chinese company."
https://www.newsweek.com/how-china-could-outsmart-donald-trump-tariffs-2058452
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One of China's alternate responses to tariffs. (Original Post)
RoeVWade
Apr 11
OP
marble falls
(64,746 posts)1. Burger King did a version of this. too. They bought Tim Horton's in Canada and then moved BQ's headquarters ...
... to Canada. Now they pay corporate taxes in Canada.
MichMan
(14,905 posts)2. Not very surprised
A country that has zero concern about stealing intellectual property and copying products stolen from others isn't going to be concerned about other dubious business practices.
BoRaGard
(5,046 posts)3. "Ha ha. Krasnov (R-Felon) is a big, stupid sucker." - Chyner
