Factbox: Chinese companies react to U.S. tariffs announcement

TCL Electronics Holdings

04/04/2018 11:26

SHANGHAI/HONG KONG, April 4 (Reuters) - China hit back on
Wednesday at the U.S. government's plan to slap tariffs on $50
billion in Chinese goods, retaliating with a list of similar
duties on key U.S. imports, and adding to fears that the world's
two largest economies are heading towards a trade war.
 urn:newsml:reuters.com:*:nL4N1RH18A
    Below are some of the reactions from some Chinese companies
and trade bodies to Washington's announcement of proposed
tariffs on Chinese imports into the U.S.
   
    China Eastern Airlines  600115.SS   0670.HK 
    The airline said on Wednesday that it could adjust capacity
and frequency on the China-United States route in the
expectation that the trade dispute could impact passenger travel
and cargo. It has set up a group to come up with a relevant
plan.  urn:newsml:reuters.com:*:nL4N1RH1MS
    "A trade war is not good for the two countries. We hope that
China and the United States can negotiate together to avoid a
trade war," said the carrier's Chief Executive Ma Xulun. 
    When asked about the airline's plane buying plans, he said
that "it's too early to say, we will keep an eye on the
situation of the China-U.S. trade war."
    
    TCF Multimedia  1070.HK 
    A representative for China's largest TV manufacturer said it
plans to shift some TV production from its Huizhou headquarters
in southern China to its factory in Mexico if the proposed
tariffs are implemented. 
    He said the company expects the impact to be manageable as
the U.S. accounts for just over 10 percent of its sales, and 
production capacity at its Mexican factory can be increased
without huge additional costs. He added that the company also
has a factory in Vietnam that can replace some of its China
production capacity if needed.
    
    China Chamber of Commerce for Import and Export of Machinery
and Electronic Products
    The industry body, which represents nearly 10,000
manufacturing firms, said the United States' trade investigation
into Chinese firms had "no factual basis".
    It noted in a statement published by state broadcaster CCTV
that the Chinese government was ready to take equal measures on
U.S. products to safeguard China's interests and said it would
give Beijing its full support.  urn:newsml:reuters.com:*:nB9N1PB03I
    
    COS Shipping  601919.SS   1919.HK 
    The shipping company said on Tuesday that there was
currently little evidence that the tensions were affecting cargo
volumes but noted that it had reduced U.S. capacity slightly
over the past few years as part of a restructuring. 
    China's largest shipping company, though, said that it was
ready to take "appropriate action" to protect its market should
it start to see an impact. It added that trade between China and
the United States currently contributes to about 15 percent of
its cargo volumes.  urn:newsml:reuters.com:*:nL4N1RG3W9
   
    CRRC Corp Ltd  601766.SS   1766.HK 
    An executive at the train carriage maker, which has won
contracts to supply Los Angeles, Chicago and Boston with metro
cars, said it was still researching the impact of an announced
25 percent tariff on 1,300 Chinese products, including advanced
rail equipment.
    He said the company still needs to "carefully look at what
items the list affects" before making an assessment.
    He declined to be named as he was not permitted to speak to
the media. A CRRC spokesman declined immediate comment. 
    
    Air China  601111.SS   0753.HK 
    The airline said last week that it did not expect to see any
significant impact on the Chinese flag carrier's passenger and
cargo volumes. 
    "The relationship between the United States and China is a
complementary one. It's very strong. This trade war is like a
game," said the company's board secretary Zhou Fen at a
post-results briefing. 
    "We don't think this issue will impact on our passenger and
cargo volumes, there shouldn't be much impact."

 (Reporting by Brenda Goh in SHANGHAI and Sijia Jiang in HONG
KONG; Additional Reporting by Tina Ge in HONG KONG
Editing by Martin Howell)
 ((brenda.goh@thomsonreuters.com; +86 (0)21 6104 1763; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))