Business

Tariffs Drive Companies To Move From China To Southeast Asia

Motorcycles are popular in the United Kingdom as a means of transport. Learner riders as well as mature riders can choose from the Kawasaki dealers in the UK for new and quality used motorcycles after gaining a full motorcycle license. Motorcycle dealers also offer British-approved crash helmets that are compulsory for riders.

Meanwhile, more than $250 billion exports that range from motorcycles to refrigerators and leather belts from China will become more expensive for Americans because of the trade war. Many manufacturers of electronics, industrial machinery and fashionable garments have to move their production out of China because of the US tariffs.

According to William Ma, group managing director of Kerry Logistics, a Hong Kong-based firm that assists global companies in managing their supply chains, they are being flooded but inquiries. Manufacturing operations of many firms were kept in China because of the large domestic market and the advantages offered to businesses. However, those who are moving out of China are not transferring to the United States. They are looking at other Asian countries.

In some industries, the tariffs have hastened the movement of manufacturing companies from China to Southeast Asian countries where labour is cheaper. Steve Madden said that it is transferring a significant part of its handbag production to Cambodia and other countries. At present, 85% of the handbags are made in China, a figure that is expected to drop to about 50% or 60% next year.

The shift is due to the trade war between the US and China. Steve Madden says that they have to be prepared although they are hopeful that cooler heads may prevail. Hugh Lo, VP of consumer division of Taiwan’s New Kinpo Group that makes electronics for Toshiba and Samsung said they are being inundated by calls from companies that want to move their manufacturing out of China.

Authorized Kawasaki dealers in the UK have a full range of Kawasaki bikes available including demonstrator bikes. The best seller right now is Kawasaki Ninja 300 that looks like a full blooded sports bike but more manageable for the less experienced biker. The Ninja 300 is designed to live up to the tradition of the Ninja brand.