China and the United States are currently tied to a bitter trade war. While some observers said that this will severely affect China's economy, latest data reveal the contrary. Moreover, China's President Xi Jinping assured the public that the economy holds steady despite the recent threat of trade tariffs from the United States.
President Xi's recent remarks hold true when market data is thoroughly analyzed. Biobase Group, a Chinese manufacturer of laboratory equipment, have recently stated that its market was heavily strengthened by the trade war.
Prior to the trade war, Biobase Group's customer base is limited to small market. Following the trade war, Biobase Group's market have expanded and now reports prospects from domestic customers.
Due to massive and uncontrollable tariffs levied, some domestic Chinese consumers have resorted to dealing with local alternatives. In a statement acquired by Bloomberg, Biobase Group's chairman was quoted saying that the Chinese domestic market is heavily reliant on imports.
Now that import products are heavily taxed, local producers are forced to rely on domestic producers in order to cut the cost of production. While some market analysts have stated that the trade war will severely cripple the economy of both China and the United States, recent data reveals otherwise.
Because of this trade war, local Chinese consumers have resorted to relying to local Chinese producers. This trade alternative has boosted the domestic Chinese industry.
U.S. President Donald Trump imposed tariffs against Chinese goods in order to curb the unprecedented rise of the Chinese economy. However, based on recent data released, it would appear that the Chinese economy remains steadfast despite the tariffs imposed by its counterpart.
Market analysts are positive that China's domestic market is big enough to mitigate the repercussions posed by tariffs from the U.S. This sustainable domestic market is big enough to support China's economy, according to many analysts.
Many market analysts said that these recent developments are part of the government's "Made in China 2025" program. This program intends to make the Chinese domestic market sustainable and defer from relying on foreign imports. Thus, some market analyst believe that the trade war just strengthens the country's "Made in China 2025" philosophy.
Many observers believe that the tariffs imposed by the U.S. will only affect the Asian market but will not break the Chinese market.
