JAKARTA – China Observer (CO) has reported that small and medium-sized enterprises (SMEs) in China have halted production activities due to a 145% export tariff increase imposed by the United States (US). CO is a news and analysis channel that reports on societal activity directly from within China.

In a YouTube broadcast aired on 15 April, CO stated that reduced production in several SME-scale manufacturing facilities has affected export activity at major logistics ports in Guangdong, Jiangsu, and Zhejiang provinces. Export volumes have declined compared to levels prior to the implementation of reciprocal tariffs by the US on 2 April.

The slump in activity has also impacted sales to the US, Vietnam, Cambodia, and other South Asian trade partners. The production stoppages at numerous factories, triggered by the disruption of exports, have raised concerns over potential impacts on employment absorption in China.

Meanwhile, Chinese state news agency Xinhua reported on the visit of Chinese President Xi Jinping to Vietnam on Tuesday (15/4). In a meeting with Tran Thanh Man, Chairman of Vietnam’s National Assembly, Xi urged both parties to prioritise the sustainability of bilateral trade.

Xi expressed hopes of witnessing further progress in Vietnam’s development on his next visit.

Currently, the US and China have imposed reciprocal export tariffs of 145% and 125% respectively, a policy clash that previously triggered declines in stock indices across both Asia and the United States. (LK)