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world1h ago
For Chinese exporters, Iran worries eclipse tariff woes as Trump, Xi prepare to meet
- The Iran war dominates Chinese exporters' concerns as Trump and Xi prepare for talks, shifting focus from tariffs to regional stability.
- Executives say supply chains were disrupted, with ships delayed and freight costs rising as the Strait of Hormuz remains contested.
- Analysts say exporters diversified away from the U.S. and now fear renewed demand disruption from the Middle East conflict.
- Some firms report higher raw material and energy costs as the war hampers shipping and fuels price volatility.
- Beijing and Washington are expected to discuss reopening the Strait of Hormuz and restoring stability in the region.
- Some firms already prepared contingency plans to downsize if the conflict drags on into the second half of the year.
- Investors and policymakers are watching whether a potential ceasefire could offer a longer-term relief or only a short-term fix.
- China's exports to Gulf nations rose last year, signaling a shift away from dependence on the U.S. market.
- Analysts say exporters expect muted tariff levels but have built in workarounds to adapt to volatility.
- Beijing will likely seek concessions, such as increased purchases of American goods, during the Trump-Xi talks.
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