(Yicai Global) Sept. 21 -- Chinese medical equipment maker Intco Medical plans to set up a unit in Vietnam to avoid the US import tariffs.
Intco's board meeting approved the proposal to establish a subsidiary in southern Vietnam's Tien Giang province, the Shandong province-based firm said yesterday.
The Chinese firm produces butyronitrile gloves, as well as cold and hot compress products that were on the US Section 301 tariff list. On Sept. 17, US President Donald Trump's administration imposed additional 10 percent tariffs on USD200 billion worth of Chinese goods. The levy will rise to 25 percent on the first day next year.
Some 60 percent of the company’s income came from the US last year, amounting to CNY1.75 billion (USD255.7 million) its annual report shows.
The company’s stock price has pared almost 80 percent of its earlier gains this year to CNY16.51 (USD2.41) at the close today.
US tariff barrier has affected some of the company’s products exported to the US, but generally, the revenue share was not high, the firm said on Sept. 19.
Editor: Emmi Laine