Chinese companies flee overseas to avoid US tariffs

China's textiles factories are among those looking to relocate abroad to avoid US tariffs. AFP PHOTO

What you need to know:

  • The growing list of foreign firms moving supply chains away from China -- toy company Hasbro, camera maker Olympus, shoe brands Deckers and Steve Madden, among many others -- already has Beijing worried.
  • China's growing e-bike industry faces duties not only from the US but also the European Union, which slapped provisional anti-dumping tariffs of 22 to 84 percent on Chinese-made e-bikes in July, alleging Chinese companies benefited from cut-rate aluminium and other state subsidies.

A growing number of Chinese companies are adopting a crafty way to evade US President Donald Trump's tariffs: remove the "Made in China" label by shifting production to countries such as Vietnam, Serbia and Mexico.
The world's two largest economies have been locked in a months-long trade fight after Trump imposed 25 percent customs duties on $50 billion worth of Chinese goods this summer, triggering a swift tit-for-tat response from Beijing.

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