They are better after US tariffs

The tariff war that has triggered The administration led by Donald Trump It is already benefiting some companies from China. At the current situation it is surprising that there are companies that are strengthening despite The uncertainty that campaates to your wide In essentially all markets, but there are. One of them is the Chinese supplier of semiconductors and components for chipsea technologies (Shenzhen) corp. cars and its actions They have risen 4.38% in the Shanghai bag despite the chaos we are living.

However, this is not at all the only Chinese company that is going better after the US tariffs than before its deployment. The PANV Microvent Tech actions, which manufactures sensors, instrumentation and electronic cars, They have risen a few hours ago 5.29% In the Shanghai bag. And those of solar trine, which produces photovoltaic panels and batteries, have increased 3.11%. A priori it is surprising that some companies of One of the most affected countries For the US tariffs they are going well, but it has a very interesting explanation.

China has something crucial in its favor: a huge market

In the country led by Xi Jinping there are also companies that are not going better after the arrival of tariffs. Shanghai Baolong Automotive shares, which is dedicated to the manufacture of valves for tires, exhaust pipes and other car components, have fallen 6.97% in the Shanghai bag. And those of Zhejiang Yankon Group, which specializes in the tuning of lighting components, such as low consumption LED lamps, have reduced 5.61% in Shanghai.

What is happening in China has a very clear explanation: those companies that are maintained above all thanks to their income in the Chinese market are being favored by the possibility of monopolizing the sales of their foreign competitors, especially if they are Americans. This is exactly what is happening to the Chinese company Pan Asian Microvent Tech and the American company WL Gore & Associates. These two corporations compete in many markets. Also in the Chinese.

WL Gore & Associate The tariffs with which the Chinese government He has responded to his American counterpart. In these circumstances, of course, the alternative solutions that Pan Asian Microvent Tech places will be more competitive. This is the reason why the actions of this last company are uploading in the Shanghai Stock Exchange.

This statement from a Microvent spokesman for its investors Express clearly What is currently happening: “Our products have a more attractive price than those of Gore (…) If China imposes a 34% tariff on all US imports the competitiveness of our products will increase.” In these circumstances, even Chinese companies whose actions are falling, such as Shanghai Baolong Automotive or Zhejiang Yankon Group, They contemplate the immediate future with serenity. After all, they have the opportunity to take refuge in the gigantic Chinese market. And, in addition, these two companies in particular They have anticipated that they will transfer the cost derived from US tariffs to their US clients.

Image | Helmy Zairy

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