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China Daily Website

Factories to face headwinds from enlarged TPP

Updated: 2013-04-25 02:49
By YU RAN in Shanghai ( China Daily)

Manufacturers with an advantage in making specific products also plan to leave China in search of lower costs.

"We plan to move three basic production lines from China to Vietnam in May to lower the costs and attract more clients with cheaper prices,"said Huang Fajing, chairman of Zhejiang Rifeng Lighter Co Ltd. Most of his products are exported to Japan.

Huang added that although his company has yet to be affected by the TPP, it will definitely have a negative impact on his business.

In addition, experts also suggested it would be a trend that more companies would choose to buy factories in Southeast Asian countries for improved profits.

"China's export volume will probably decrease gradually due to the agreement, which is an economic measure by the US to strengthen its influence in the Asia-Pacific region,"said Shen Guilong, a professor of economics at Shanghai Academy of Social Sciences.

Shen added that Chinese companies moving some production lines out of China for lower expenses would ease the tending tougher situation.

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