High Tariffs Stand in the way of US Exports to China

epa01865575 Workmen load steel tubes in a metals wholesale market in Shenyang, northeast China 18 September 2009. U.S. Steel has asked President Obama to impose 90% duties on imports of Chinese steel tubes which it alleges are being dumped at prices below the cost of production. EPA/MARK

My company, Electroimpact, designs, manufactures, and sells products to the aerospace industry. Since China is involved in this industry, my company has been able to make sales there. Even though my company is selling products to China, my company is not manufacturing any there. I am truly fortunate that my company has been able to gain a foothold selling to the United States’ biggest competitor in the global marketplace.

There are many barriers to selling US made goods in China. These barriers occasionally open and then they close; purely based on the whim of the government. It will not be possible to resolve this without a commitment to active participation from the US government. For my company, Electroimpact, our opening is based on the interest of the Chinese aerospace industries to build new factories that can complete with those in the USA and European. As soon as they deem that they can buy equivalent goods inside of China then the door of opportunity will close.

The list of barriers blocking export to China is extensive:

  1. Uncompetitive US employment regulations
  2. Wage differentials
  3. Import duties into China
  4. Border harassment
  5. Lack of commitment of US companies

Only the fifth barrier can be addressed by the management of companies in the US.  The other four issues must be addressed by a concerned and committed US government. Electroimpact is committed to employing the American worker. Most American companies are committed to short term profits, which does not help the American worker or the growth of business overall in the US and around the globe. At Electroimpact we will continue to try to sell our goods in China.