Raphael
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https://www.ft.com/content/18ced918-89c7-11e8-bf9e-8771d5404543
A majority of Chinese consumers would be prepared to boycott US goods in the event of a trade war with Washington, a survey has found, signalling the high stakes in the escalating trade conflict between the two countries.
The survey found that 54 per cent of 2,000 respondents in 300 cities across China would “probably” or “definitely” stop buying US-branded goods “in the event of a trade war”. Just 13 per cent said they would not.
The remaining 33 per cent said they were unsure or did not at present buy US branded goods, according to the survey, conducted for FT Confidential Research (FTCR), a research unit at the Financial Times.
The survey was carried out between June 27 and July 10, mostly before the US imposed 25 per cent tariffs on $34bn of Chinese goods on July 6. The move elicited an immediate tit-for-tat response from Beijing.
To date, China has avoided calling for any boycott of US goods.
Analysts said Beijing was unlikely to do so because of fears over a backlash. “The Chinese authorities haven’t done anything like they did with Japan and South Korean goods in the past,” said Kent Kedl, senior partner in the Shanghai office at Control Risks, a risk consultancy.
“Beijing is going to be very careful. They know that the repercussions all over the world would be very unpredictable,” Mr Kedl added.
South Korean-Chinese trade was badly hit last year after China’s state-run media called for a boycott of goods and services because of Seoul’s decision to install a US-made anti-missile system. South Korea’s government estimates that the country lost $6.8bn in tourism receipts alone as Chinese middle-class travellers stayed away. Car sales by Korean manufacturers in China were also badly hit.
Japanese car exports also tumbled 32 per cent in the 12 months after China launched a boycott over disputed islands in September 2012.
But Sima Pingbang, a blogger on Chinese social media, said the current US-China trade tensions were being covered in a less provocative fashion by state media.
“The main reason is that the US has a really big impact on China and the impact is ten times bigger than that by Korea,” he said. “The US influences Chinese ideology, China’s economy and it also affects lots of people’s personal interests.”
The FTCR survey found that the consumers most likely to shun US products were those on lower middle incomes, aged 25-29, and living outside large metropolitan centres and provincial capitals.
A majority of Chinese consumers would be prepared to boycott US goods in the event of a trade war with Washington, a survey has found, signalling the high stakes in the escalating trade conflict between the two countries.
The survey found that 54 per cent of 2,000 respondents in 300 cities across China would “probably” or “definitely” stop buying US-branded goods “in the event of a trade war”. Just 13 per cent said they would not.
The remaining 33 per cent said they were unsure or did not at present buy US branded goods, according to the survey, conducted for FT Confidential Research (FTCR), a research unit at the Financial Times.
The survey was carried out between June 27 and July 10, mostly before the US imposed 25 per cent tariffs on $34bn of Chinese goods on July 6. The move elicited an immediate tit-for-tat response from Beijing.
To date, China has avoided calling for any boycott of US goods.
Analysts said Beijing was unlikely to do so because of fears over a backlash. “The Chinese authorities haven’t done anything like they did with Japan and South Korean goods in the past,” said Kent Kedl, senior partner in the Shanghai office at Control Risks, a risk consultancy.
“Beijing is going to be very careful. They know that the repercussions all over the world would be very unpredictable,” Mr Kedl added.
South Korean-Chinese trade was badly hit last year after China’s state-run media called for a boycott of goods and services because of Seoul’s decision to install a US-made anti-missile system. South Korea’s government estimates that the country lost $6.8bn in tourism receipts alone as Chinese middle-class travellers stayed away. Car sales by Korean manufacturers in China were also badly hit.
Japanese car exports also tumbled 32 per cent in the 12 months after China launched a boycott over disputed islands in September 2012.
But Sima Pingbang, a blogger on Chinese social media, said the current US-China trade tensions were being covered in a less provocative fashion by state media.
“The main reason is that the US has a really big impact on China and the impact is ten times bigger than that by Korea,” he said. “The US influences Chinese ideology, China’s economy and it also affects lots of people’s personal interests.”
The FTCR survey found that the consumers most likely to shun US products were those on lower middle incomes, aged 25-29, and living outside large metropolitan centres and provincial capitals.
