Hl Corp, a Shenzhen-listed bike parts maker, made clear to investors last month that tariffs were in mind when it decided to move production to Vietnam. Trump warned last week those tariffs -- targeting $200 billion in Chinese imports -- could come "very soon". "Building a factory abroad allows 'indirect growth,' by evading international trade barriers." The centre of manufacturing will shift away from China in the future, bike part maker H1 Corp told investors when announcing its Vietnam factory. The state support Chinese companies receive is key to the Trump administration's case in taxing Chinese goods, but Hl shows how companies may continue to benefit even after shifting some of their production overseas.

Source: Bangkok Post September 11, 2018 05:37 UTC