Help firms hurt by tensions

In the wake of trade tariff tensions, China (and the US) need to be aware of the potential risk of a breakdown in the industrial chain. A study found that if the trade friction lasts for one more year, countries will face the risk of industrial chain breakdown.

The trade friction will affect foreign investment. Some companies may shrink the size of their business, or even close down and move out of China.

Normal retreat of foreign investors is understandable. But Chinese companies investing overseas can also move to another destination. So, any abnormal retreat of foreign investors due to the trade friction and increasing tariffs should receive close attention.