Editorial | China’s hi-tech firms well equipped to deal with tariff threats
As the EU considers additional levies on Chinese EVs, country can take heart from progress made by Huawei despite crippling Western sanctions
Amid the gloom hanging over China’s economy this year, the trade data has offered a bright spot. The August numbers were no exception – exports saw their fastest clip in 17 months, defying expectations, helped by shipments of hi-tech and electric vehicles.
Exports rose a better than expected 8.7 per cent from a year earlier to US$308.65 billion in August, up from a 7 per cent increase in July, the General Administration of Customs said.
EV exports surged as some manufacturers rushed to “front-load” their orders to beat additional tariffs being considered by the European Union due to alleged overcapacity.
The surge of vehicle shipments of 39.27 per cent year on year in August represents the fastest expansion recorded this year. That spike is likely to be short-lived as the proposed additional European tariffs start to pinch.
Even so, China still has other, more welcoming markets for its high-quality and low cost EVs.
What should be more sustainable is the surge in exports of higher-end tech goods. Exports of integrated circuits saw a year-on-year rise of 10.64 per cent by volume, and 18.23 per cent by value, during the period.
