In Depth: Chinese Manufacturers Put Off Overseas Investment Plans as Tariff War Explodes

Companies are watching for the fallout and waiting to see how other potential international investment destinations such as Vietnam and Cambodia respond

In Depth: Chinese Manufacturers Put Off Overseas Investment Plans as Tariff War Explodes

By Luo Guoping and Wang Xintong

Published: Apr. 9, 2025 8:10 p.m. GMT+8

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“We need to let the bullets fly for a while,” said a trade expert, referring to the title of a popular 2010 Chinese black comedy film that’s become a catchphrase for letting things take their course. Photo: AI generated

The global trade storm unleashed by U.S. President Donald Trump has forced many Chinese companies to reconsider their international expansion plans as uncertainty pervades markets worldwide.

Trump announced “reciprocal tariffs” ranging from 10% to 49% on dozens of U.S. trading partners on April 2, including an additional 34% duty targeting China. Beijing swiftly retaliated, imposing matching 34% levies on U.S. goods — prompting Trump to slap a further 50% charge on Chinese imports, taking the total tariff increase during his second term to 104%, effective Wednesday, according to a White House spokesperson.