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S'pore Firms Welcome Lift of SINO-US Trade Barrier
Singapore's electronics manufacturers cheered the latest news that trade barriers between the United States and China would soon be lifted, saying that the development would raise demand for their electronic components, the local Business Times reported Thursday.
On Tuesday, US senators voted overwhelmingly to give China permanent access to US market. The legislation will come into effect once China becomes a member of the World Trade Organization, expected within a few months.
Particularly upbeat are Singapore-based contract manufacturers -- companies that provide electronics manufacturing services.
They noted that demand for their products should rise as major US electronics brand names use their components in a wide range of products.
They said more trade flow is expected between U.S.A. and China from now on -- meaning increasing demand for goods and more business from the United States.
Gay Chee Cheong, group executive director at listed contract manufacturer JIT Holdings, said companies with a presence in China should benefit as Americans become more aware of trade opportunities in China.
"Trade between the world's technology leader and the world's most populous country must be good for any company based in China," Gay said.
"China is becoming a very attractive manufacturing base not only for MNCs in China but also for customers in the U.S.A. and Europe. They're able to get the quality they want but at much lower costs," Gay said.
Chester Lin, chief executive at listed NatSteel Electronics (NEL), echoed a similar view. "When they open up the China market, everybody can compete there. The China market is going to grow," he said.
But electronics manufacturers are not the only ones which stand to gain.
Lam Pang Chuang, managing director of textile trader Ban Joo & Company, said its new Shanghai office will help the firm double turnover in the next five to eight years once China joins the WTO.
He said Ban Joo's sales of fabrics to US customers have been constrained by trade quotas. Once these are lifted, its sales of products like raw fabric, yarn and grey cloth (used for printing and dyeing) to the US should rise.
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