Are Chinese companies using Cambodia to evade US tariffs?

China’s exports to Southeast Asian country have been rising steadily since start of trade war.

Chinese companies appear to be trying to dodge the tariffs imposed by the United States as part of a punishing trade war by redirecting their shipments through Cambodia.

“The trade war between China and the United States dealt a blow to the Chinese economy and many of my friends back in mainland China are looking at whether they can use Cambodia as a transit spot to escape those tariffs,” said Kong Linghu, manager of Enterex (Cambodia) Industrial Co, a Taiwanese firm that established a base in the Sihanoukville Special Economic Zone (SSEZ) in Cambodia in 2015.

“Although Cambodia’s certificate of origin requires only 40 per cent of a product to be originated from the country, it’s still a relatively high bar,” said Kong, whose company mostly makes car parts for export to Europe.

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