TCL Chairman Li Dongsheng addressed the impact of US tariffs on Chinese products at the Summer Davos Forum in Dalian, China. He revealed that TCL has adapted its trade route to maintain sales in the US market, its largest export destination.
Previously, TCL purchased components from the US, manufactured in China, and exported back to the US. However, due to increased tariffs, TCL now buys chips and materials from the US, processes core components like displays in China, then ships semi-finished products to Vietnam, Mexico, and Indonesia for final assembly before exporting to the US.
This new multilateral trade route has maintained TCL’s US sales but has extended the process and increased costs, potentially contributing to US inflation issues.
Li emphasized the importance of balancing interests in economic globalization. He suggested Chinese companies should not only sell products overseas but also invest, create jobs, increase local tax revenue, support local supply chains, and cultivate local suppliers.
Li proposed that Chinese firms should shift from “exporting products” to “exporting industrial capacity,” enhancing awareness and responsibility for promoting local economic development.
Source: Central News Agency (Taiwan), June 25, 2024
https://www.cna.com.tw/news/acn/202406250380.aspx