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Last year, when President Trump issued a trade protectionist warning, he was basically seen as bluff. Now, Zhou Jiehao and other Chinese factory owners have said that the risk of the trade dispute is much more real.
They warned that the trade frictions could lead to the closure of small factories, some of which may be transferred from China, and the use of problematic practices to avoid high tariffs.
"We used to think that we were not affected because we were doing small metal parts," Zhou Jiehao said in a brown three - story factory in Dongguan. "(now) everyone is talking about the proposed war."
Dongguan is one of the main export centers in the Pearl River Delta region of southern China. The area is known as the "world factory", which accounts for about 1/4 of China's exports.
Around him, hundreds of program-controlled machine tools buzzed, cutting fine aluminum, steel and brass into delicate parts. Zhou Jiehao pointed to a thumb size car valve as an example, which was used to assemble a car brake system in a U.S. factory and one of the products involved in a tariff storm.
Zhou Jiehao's factory produces about 1500 kinds of metal parts, including a pricking needle for the espresso capsule, of which about 200 are likely to be taxed by the United States. The tax plan proposed by the United States will affect Chinese products worth 50 billion US dollars.
"If they are to impose a 25% tariff on those products, we will have to take out a lot of measures to survive," said Zhou Jiehao, whose company, Tianbao International Industry Co., Ltd. has been in China for more than thirty years.

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