At a machinery firm near Shanghai, China's sprawling business capital, engineers rely on the United States for parts they need to make precision measuring equipment for automakers and other industries.But the company, Suzhou Osaitek Photoelectric Technology, is now speeding up plans to produce the components itself, according to He Zhongya, its chief engineer.
The reason? New tariffs in the trade clash between the United States and China have made the American-made parts too expensive. The company, which employs about 100 people, would have made the shift to local production eventually, but "the trade war accelerates the transition," He told CNN. The world's top two economies have imposed tariffs on hundreds of billions of dollars of each other's goods. The measures are expected to take a heavier toll on China's economy, which relies more on exports and has already started losing steam this year.
The reason? New tariffs in the trade clash between the United States and China have made the American-made parts too expensive. The company, which employs about 100 people, would have made the shift to local production eventually, but "the trade war accelerates the transition," He told CNN. The world's top two economies have imposed tariffs on hundreds of billions of dollars of each other's goods. The measures are expected to take a heavier toll on China's economy, which relies more on exports and has already started losing steam this year.
