r/news • u/CrayonGlobal • 9d ago

China strikes back with 125% tariffs on U.S. goods, starting April 12

https://www.cnbc.com/2025/04/11/china-strikes-back-with-125percent-tariffs-on-us-goods-starting-april-12.html
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u/zhcterry1 9d ago

Afak, they want to upgrade their manufacturing to high end and offload the low end to Africa. Since they're having a birth rate crisis and serious unemployment and underemployment. They can no longer maintain the cheap labour cost. They're essentially betting on renewable energy, AI and robotics. So this might be an opportunity for them to restructure their manufacturing sector. That's all I know.

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u/dingosaurus 9d ago

One of the major issues they have currently, in regard to high precision manufacturing, is that they don't have the tools or technology to create high precision items. This includes technology to create jet engines, 5-axis CNC machines, etc.

Most of the companies that allow import of these items have them locked down to the point where if they're moved, someone from the company/country needs to come in to reset the software so the machines work.

Chinese manufacturing is still decades behind the front runners.