Possible Trade War With US to Have Limited Impact on China's Home Appliance Makers
Wang Zhen
/SOURCE : Yicai
Possible Trade War With US to Have Limited Impact on China's Home Appliance Makers

(Yicai Global) March 29 -- China's original equipment manufacturers, or OEMs, and home appliance makers are expecting some challenging times if the U.S.-China dispute escalates into a trade war, but believe its impact would be limited, they said.

"The U.S. does not manufacture home appliances and the American consumers need these products, so a possible trade war will have little effect on China's home appliances sector," said a manager of the Guangdong Galanz Group Co. Even if the U.S imposes a 25 percent tariff on home appliances imported from China, it may only target large home appliances, added the manager.

However, president of Galanz, Liang Zhaoxian thinks differently as he told Yicai Global that the company would face some difficulties and challenges during such a trade war.

China's home appliances sector has small margins and other countries' production capacity and supply chain cannot replace Chinese OEMs, said Jia Dongsheng, general manager of China Market Monitor, a research firm. If the U.S. imposes tariffs on home appliances imported from China, it will affect American consumers' living quality, Jia added.

Galanz is one of the world's largest microwave oven manufacturers and makes 36 million units of microwave ovens per year, some 10 million of which are supplied to the U.S. Galanz started to cooperate with the U.S.'s large chain supermarkets such as Walmart Inc. 20 years ago.

Galanz sells its own brand refrigerators, microwave ovens and dryers as well as other home appliances at Walmart outlets across the U.S.

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Keywords: Hope Appliance , U.S.-China Trade Dispute , Galanz