BEIJING, April 16 (TMTPOST) –Cao Dewang, the founder and owner of Fuyao Glass Industry Group Co., Ltd, said that the decline in China’s exports to the U.S. market was mainly causedby marketdynamics, rather than geopolitics.
He made the commentsin arecent episode of Junpintan, a popular Chinese talk showproduced by Phoenix TV.
According to China Customs statistics, China’s exportorders for the spring of 2023 decreased by 40%, with traditional products experiencing a whopping decline of over 50%. Meanwhile, the U.S statistics reporteda 40%declinein imports from China, while it has been ramping up imports from Europe. The situation has raised concerns in China, with many people believing that a hike in trade tariffs imposedby the U.S.isthe chief culprit. However, Cao holds a different opinion.
Caogained international fame after being featured in the Oscar-winning documentary American Factoryin 2019. The film documented the ups and downs of Fuyao Group’s operations in the U.S., focusing on such themes as cultural conflicts, labor issuesand production challenges. With extensive experience in doing business in the U.S., Cao believes that the current decline in exportorders is not a result of the U.S. policies, but a reflection of the weakening American market.
“I phoned my staff in the U.S. to investigate the issue. They mentioned that the inflationwas severe in the U.S, with beef and gasoline prices rising by about 40%, and labor and housing prices by about 35%. Also, there is a severe labor shortage in the country,” Cao said in the recent talk show, predicting that a “long winter” was yet to come for China’s trading situation. He encouraged the Chinesebusinessmento face up to the challenges with resilience and bravery, and to weather the cold winter together.
Fuyao Glassis the world’s largest glass producer and supplier, withproduction bases in about 11 countries and regions.In 2002, Fuyao Glass won a trade dispute caseagainstthe Canadian government, marking the first victory by a Chinese company to overturn an anti-dumping rulingafter China’s entry into the World Trade Organization. In 2004, Fuyao Glasssued the U.S. Department of Commerceand won the case, becoming the first Chinese firm to challenge an anti-dumping decision made by U.S. authorities.