“Caution” and “global congress” cited as toy industry’s answers to tariffs possible
Global economists have urged the toy market to remain cautious surrounding the topic of China-US trade relations, in spite of the two now being in a stage of negotiation.
The message was delivered at the Asian Licensing Conference yesterday where proceedings had been drawn to a close with a discussion about the toy industry’s partnership with the Chinese market place.
The message from Louis WK Chan, HKTDC Assistant Principal Economists (Worldwide Investigation) was that with Mainland China representing 81.five per cent of global suppliers, the industry must stay cautious. Even in light of the negotiations amongst China and the US.
While the toy industry is at present not targeted by sweeping new tariff barriers, he stated, it was not impossible” for the toy industry to be affected.
Offering guidance on how to cope with feasible US tariffs on toys, Mr Chan mentioned the possibility of goods getting put forward for getting ‘specifically excluded’ from tariffs, with some 984 requests possessing been authorized by the US recently.
He also highlighted approaches such as setting up e-commerce operations, taking into consideration the reclassification of products and applying for a rule to reduced the cost of a item associated to value as genuine techniques of avoiding tariff charges.
Chan talked about Poland, Chile, the Czech Republic, Vietnam and India as amongst the nations exactly where very good possibilities were emerging, and indeed exactly where nearby firms had been looking for new suppliers.
Hong Kong was also expanding on the quantity of cost-free trade agreements such as those recently concluded with the Association of Southeast Asian Nations (ASEAN) and Georgia.
Meanwhile, business veteran Richard Gottlieb of Southern California highlighted that with Hong Kong continuing to generate opportunities via its IP protection capabilities, China would turn into the all round largest consumer of toys by 2022.
He stated that the global toy sector should take a ‘unified position in the face of tariff threats and amplify its position on cost-free trade and security requirements.”