While the US business community is wringing its hands with a growing sense of trepidation over the impact of swelling tariffs, a tech-solution service provider based in the US state of Tennessee is among those remaining optimistic about doing business in China.
Ali Din, CEO of the Premier NX, which offers services to US and Canadian clients from the transport and financial service industries in China, said that some American firms may want to maintain or even expand their businesses in China amid skyrocketing tariffs, but a new operating model is needed.
“Things may be a bit fluid, policy-wise, and so a company should really look at how do I de-risk, how do I rebalance my operation, and [how do I] do so in a way that I’m not relying on legislative changes,” he explained.
With tariffs on China surpassing 100 per cent, Din noted that some American businesses have kick-started evaluations with their Chinese partners to determine how much cost they can pass on to customers and how much cost the companies and suppliers can absorb.
“For companies that are in China, I don’t think they want to leave,” Din said. “They’re looking to the government to provide some assurance around consistency of policy and continue to have good working terms for businesses. The key [is] really to weather through and navigate this [with] flexibility.”
We’re basically helping [American firms] respond
American firms can employ an “indirect route” or “hybrid strategy” to get around geopolitical issues and operate in China, Din suggested.
