Texas factory gives Chinese copper firm an edge in tariff war
Amy LV, Florence Lo and Shubing Wang
Ganzhou, China (Reuters) -Kinese Copper Flat Wire Manufacturer Wellascent’s decision to establish a factory in Texas early last year was a fence against geopolitical risks. Now the investment pays like us Import Tariffs Increase the demand for locally produced goods.
The company’s factory in Grand Prairie will start production later on this year and are waiting to produce 3,000 metric tons of copper flat wire annually until 2028 and waiting to serve customers such as car manufacturer Stellantis. Donald TrumpTariff Wall.
The factory is exempt from the 50% tariff imposed on US customers on copper wire imports, with other semi -finished copper products such as tubes, refined copper – base component – is exempt from tariffs.
“A few potential customers in the United States, China-US trade tensions would make the stable supply of China-US trade tensions,” said Hazel Zhu, a member of the Board of Directors of Wellascent Electronic, during the tour of the factories in the middle of August. He said.
“A factory in the United States means that copper tariffs have become a golden opportunity for us.”
In three years, Wellascent plans to invest $ 100 million, which is expected to produce more than half of the overseas revenue of the company.
The investment of Wellascent emphasizes a rare case in which China has benefited by a Chinese company despite the US tariffs designed against perceived industrial domination. However, while the investment achieves Washington’s aims to bring the industry to the United States, it underlines whether it will meet Chinese companies among US policy makers.
MPs suggested the abolition of tax loans from a Ford Electric Battery facility because the Chinese battery manufacturer is planning to use technology from CATL, but the car manufacturer said he would still be entitled last month.
In the Sun Industry, some domestic producers expressed their concerns that Chinese competitors set up factories in China’s subsidized supply chains in China.
According to Consultancy Tidalwave Solution, Cameron Johnson, his senior partner, Chinese investments, especially in production, began to decrease after the first period of Trump and now stopped. The authority added that the hostile attitude in Washington echoed in Beijing, where regulators encourage firms to avoid the United States.
“Not everyone can be a target for the US or Chinese governments,” Johnson almost never invests, “Johnson said. He said. “They were lucky in many ways.”
