Chinese crane maker raises questions over US tariff plans: ‘not a real remedy’

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Chinese crane maker raises questions over US tariff plans: ‘not a real remedy’

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Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agrees

A leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.

Shanghai Zhenhua Heavy Industries – China’s top producer of container gantry cranes – denied it was a threat to US national security in comments submitted to the Office of the US Trade Representative (USTR) on Monday, adding that levies on Chinese products would not help revive American manufacturing.

China’s ship-to-shore cranes “pose no alleged cybersecurity risk, and the proposed tariffs are not a legitimate remedy”, it said in the statement.

The company’s comments come amid growing industry backlash against the US trade office’s proposal to slap a 100 percent tariff on Chinese-made cranes, which has also provoked criticism from a major US ports association.

USTR first proposed the levy in late April, along with new duties of 20 percent to 100 percent on containers and chassis made in China.

The measures are part of Washington’s broader push to revive US manufacturing and push back against China’s dominance in the maritime sector, which has also seen the introduction of steep port fees targeting Chinese-linked vessels.

The American Association of Port Authorities echoed those comments in its own submission to USTR, warning that the tariffs were doomed to fail due to a lack of alternatives to Chinese-made cranes in the market.

Applying the tariff “will not create a domestic crane manufacturing industry out of thin air. It will only increase costs for public port authorities,” the association said.

There are currently no American producers of ship-to-shore cranes, it noted. 

Only three non-Chinese companies are active in the international market: Japan’s Mitsui and the European firms Konecranes and Liebherr. 

But none of them have the production capacity to replace China’s market share, the association said.

Shanghai Zhenhua reportedly accounts for about 70 per cent of the global market for quay cranes, with products sold to 108 countries and regions.

The Shanghai-listed company generated about 4.8 per cent of its revenue in North America last year, down more than 30 per cent year on year, according to the firm’s financial statement.

In 2024, the administration of US President Joe Biden imposed a 25 per cent tariff on Chinese STS cranes.

US ports currently have 55 cranes on order and expect to need another 151 over the next six to 10 years. If the tariffs go ahead, they could cost America’s ports up to US$6.7 billion over the next decade, the association estimated.

The Port of Houston in Texas has eight cranes from Shanghai Zhenhua contracted for delivery in spring 2026, at a price of US$14 million each. That means the port would owe a whopping US$302.4 million in taxes if it is forced to pay the full tariffs, the association said.

Though the AAPA said it strongly supported efforts to reshore crane manufacturing, it added that it would take time to rebuild the industry due to a range of factors, including higher domestic steel prices, a shortage of skilled American welders, and a shortage of supplies of key crane components.

The port association suggested that the US Congress pass a bill establishing a tax credit to encourage domestic manufacturing, and called on USTR to hold off on any further tariffs on cranes until such legislation is enacted.

It also called for a delay of one to two years in implementing the proposed 100 percent tariff and requested that cranes ordered or contracted before the proposal’s publication on April 17, 2025, be exempted.

Source: https://www.scmp.com/economy/china-economy/article/3311064/chinese-crane-maker-raises-questions-over-us-tariff-plans-not-real-remedy?module=top_story&pgtype=section

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Chinese crane maker raises questions over US tariff plans: ‘not a real remedy’
Chinese crane maker raises questions over US tariff plans: ‘not a real remedy’
Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agreesA leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.Shanghai Zhenhua Heavy Industries – China’s top producer of container gantry cranes – denied it was a threat to US national security in comments submitted to the Office of the US Trade Representative (USTR) on Monday, adding that levies on Chinese products would not help revive American manufacturing.China’s ship-to-shore cranes “pose no alleged cybersecurity risk, and the proposed tariffs are not a legitimate remedy”, it said in the statement.The company’s comments come amid growing industry backlash against the US trade office’s proposal to slap a 100 percent tariff on Chinese-made cranes, which has also provoked criticism from a major US ports association.USTR first proposed the levy in late April, along with new duties of 20 percent to 100 percent on containers and chassis made in China.The measures are part of Washington’s broader push to revive US manufacturing and push back against China’s dominance in the maritime sector, which has also seen the introduction of steep port fees targeting Chinese-linked vessels.The American Association of Port Authorities echoed those comments in its own submission to USTR, warning that the tariffs were doomed to fail due to a lack of alternatives to Chinese-made cranes in the market.Applying the tariff “will not create a domestic crane manufacturing industry out of thin air. It will only increase costs for public port authorities,” the association said.There are currently no American producers of ship-to-shore cranes, it noted. Only three non-Chinese companies are active in the international market: Japan’s Mitsui and the European firms Konecranes and Liebherr. But none of them have the production capacity to replace China’s market share, the association said.Shanghai Zhenhua reportedly accounts for about 70 per cent of the global market for quay cranes, with products sold to 108 countries and regions.The Shanghai-listed company generated about 4.8 per cent of its revenue in North America last year, down more than 30 per cent year on year, according to the firm’s financial statement.In 2024, the administration of US President Joe Biden imposed a 25 per cent tariff on Chinese STS cranes.US ports currently have 55 cranes on order and expect to need another 151 over the next six to 10 years. If the tariffs go ahead, they could cost America’s ports up to US$6.7 billion over the next decade, the association estimated.The Port of Houston in Texas has eight cranes from Shanghai Zhenhua contracted for delivery in spring 2026, at a price of US$14 million each. That means the port would owe a whopping US$302.4 million in taxes if it is forced to pay the full tariffs, the association said.Though the AAPA said it strongly supported efforts to reshore crane manufacturing, it added that it would take time to rebuild the industry due to a range of factors, including higher domestic steel prices, a shortage of skilled American welders, and a shortage of supplies of key crane components.The port association suggested that the US Congress pass a bill establishing a tax credit to encourage domestic manufacturing, and called on USTR to hold off on any further tariffs on cranes until such legislation is enacted.It also called for a delay of one to two years in implementing the proposed 100 percent tariff and requested that cranes ordered or contracted before the proposal’s publication on April 17, 2025, be exempted.Source: https://www.scmp.com/economy/china-economy/article/3311064/chinese-crane-maker-raises-questions-over-us-tariff-plans-not-real-remedy?module=top_story&pgtype=section
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“Understanding the Temporary De-Escalation of the US-China Trade War”
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Appearance and Impact of Scamming Businesses on Today’s Society
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What is scamming? How does it work? How are young people connected to it? How can we avoid scamming businesses? I am going to answer these questions, so I would like to encourage you to read it up to the end.The word “scamming” comes from the Chinese language and is pronounced as “Zhàpiàn,” (in Myanmar “ကျားဖြန့်”). In Chinese, it means “cheating” or “fraud.” Today, scamming businesses are well known in Southeast Asia as fraud operations, mostly working online to trick people.One important question is: Who started these scamming businesses? Since the word comes from Chinese, many people believe that scamming businesses started in China. When IT technology developed rapidly in China, these businesses also grew internationally.Scamming businesses have different types. Some mainly target Western countries, especially rich people, retirees, and those over 40 years old. They often focus on wealthy people in America and Europe.Scamming businesses are not simple fraud operations. They are large-scale businesses that include human trafficking, forced labour, illegal weapons trade, drug smuggling, gambling, and many other illegal activities.Where are scamming businesses based?Where do they operate the most? The answer is simple. These businesses are mostly found in poor Southeast Asian countries such as Cambodia, Laos, Thailand, the Philippines, and Myanmar. They set up large offices and hire workers in these developing countries.How do they find workers?There are two main ways. First, they attract people by offering high salaries but later force them to work. Second, they use human trafficking to kidnap people and make them work against their will. In Myanmar, most of these businesses are located in border areas. They do not operate secretly but in large, well-protected buildings.How Scamming Businesses OperateUnderstanding how scamming businesses operate is very important. It is also their biggest secret. 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They study these people’s online activities and gather detailed information before making contact. Their ability to carefully research, plan, and execute fraud makes them highly organized criminal networks rather than simple scammers.Recruitment Process in Scam OperationsRecruiting workers is a crucial part of scam operations. As mentioned earlier, scammers mainly target developing countries, poorer regions, and low-wage workers when hiring employees. They lure educated individuals with high-salary job offers and then force them to participate in scam activities.Target Countries for RecruitmentScammers recruit workers from China, Hong Kong, India, Malaysia, Nepal, the Philippines, Chinese Taipei, Thailand, Vietnam, Myanmar, and African nations. 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This is why many educated people from low-income countries fall victim to scam networks.Scam Business StructureScam operations generally have three key departments:Technical Team – Consists of IT specialists (mainly foreigners) who manage online scams.Target Searching Team – Responsible for finding victims.Communication Team – Handles conversations with victims.Each department has around 15 to 20 employees working systematically.Role of the Technical TeamThe technical team is mainly composed of IT professionals who operate scam activities. They create fake social media accounts on platforms like Facebook, LinkedIn, WhatsApp, and Skype using attractive photos of young women to gain victims’ trust.They maintain these fake accounts for three to four months to make them look real. They also post random social media updates to appear legitimate. This is an ongoing task within the technical team.Final Stages of the Scam OperationOnce the search team has found potential victims, they begin engaging them in conversation.Using fake social media accounts created by the technical team, they initiate chats in different ways:Casual conversations to build trust.Flirtatious messages for male targets.Job opportunities, such as investing in new businesses or earning money by watching videos.As the conversation progresses and the victim becomes emotionally or professionally invested, they are handed over to the communication team for deeper engagement.Manipulation by the Communication TeamThis team, consisting of around 15 people, is responsible for fully convincing the victim. They engage in carefully planned dialogues:Sharing fake personal stories to gain trust.Showing edited photos as proof of their “authenticity”.Talking about their “successful business ventures”.Through constant interaction, the victim is slowly pulled into the scammers’ trap.Executing the Final ScamAt this stage, the scammers persuade the victim to invest in fake stock markets, trading platforms, or cryptocurrency exchanges created by the technical team.Initially, small profits are given to victims, making them believe they are earning real money.This psychological trick encourages them to invest larger amounts.Eventually, once a significant amount is invested, the scammers:Shut down the platform and disappear.Use fake links and QR codes to hack victims’ bank accounts.Steal money through mobile payment apps.Many victims only realize they have been scammed when it’s too late.In conclusion, this article has provided a step-by-step breakdown of how scam operations function. In the end, these scams exploit human greed – the desire for easy money. While everyone has some level of greed, scammers manipulate it to trap victims into financial ruin. By understanding these tactics, people can protect themselves and others from falling prey to these deceptive schemes.Source: The Global New Light of Myanmar
An Insight into Factors Enhancing SMEs’ Export in Myanmar
An Insight into Factors Enhancing SMEs’ Export in Myanmar
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The registered number of SMEs in line with the list issued by SME development center in 2023 is approximately 46,014. SME registration rates are the highest in Yangon region and Shan State. SME Development Law and Policies in Myanmar 3.       During the time when the State Law and Order Restoration Council was in power, the official law for small and medium-sized enterprises (SMEs) was enacted in the year 1990. Then, the 2011 Private Industrial Law was enacted and gave definitions of SMEs based upon four criteria (i) horsepower used (ii) number of employees (iii) capital investment (iv) annual production. The most recent SME-related law is the SME Development Law (2015), which gives the definitions of SMEs based upon business sectors namely manufacturing, wholesale, retail, service and others. Then, SME development rules was enacted in 2017 and in 2018, the term Small and Medium Enterprises was renamed MSMEs which stands for Micro, Small and Medium Enterprises by the Central Committee for Development of Micro, Small and Medium Enterprises. SMEs’ export 4.       A great deal of previous literature provide factors enhancing SMEs’ export. Concerning factors enhancing export, there are two widely-used approach listed as resource-based approach and the contingency paradigm. The resource-based approach focuses on the firm’s internal variables whereas the second method focuses on the external aspects. Internal determinants include management qualities such as age, education, innovativeness, foreign exposure and export dedication as well as export marketing techniques such as product, pricing, promotion, distribution, service and networking tactics. The external factors are the characteristics of the foreign market such as legal, political, and economic system, cultural similarities, market dynamics, consumer and competitor behavior and the characteristics of the domestic government, which include government tax rates, government export support, government policies and the domestic business environment. 5.       Compared to other ASEAN countries, SMEs in Myanmar are less likely to export, reporting that only 4.2 % of medium-sized firms and 0.8 % of small enterprises export directly or indirectly at least 1% of their sales (World Bank’s Enterprise Survey, 2014). Export destinations of Myanmar SMEs differ across firm size. Large firms have much more export propensity than SMEs and large firms have the capacity to export to high-income markets such as the EU and US. But, SMEs opt for regional markets such as China, Malaysia and Thailand whose target customers are less-demanding. According to World Bank Enterprise Survey, on the bright side, only 27% of medium-sized firms and 13% of small enterprises in Myanmar use material inputs of foreign origin. In Myanmar, SMEs from 4 states, 7 divisions and Union Territory, Nay Pyi Taw are engaged in export. ASEAN is an important market for Myanmar’ exports and Myanmar SMEs mainly export to China and Japan. Most of the exported products are agricultural products, marine products and wood and wood-related products. Agricultural products mainly include rice, different types of beans, white yam powder, coffee seed and coffee powder, Myanmar Tea, tamarind, jaguar, coconut, groundnut oil, sesame oil, ginger oil, oil palm, rubber, sugar, bees, lemon and honey. Marine products consist of fish, frozen fist stake, shrimps, soft shell crab, squid and lobster. Wood and wood-related products are wood, teak, value-added wood products, rattan products and bamboo place mate. Government Export Assistance Programs6.       In accordance with notification (64/2023), which was issued by Ministry of Planning and Finance, the government provides exemption of commercial tax on 27 kinds of goods listed as different kinds of corn, fresh fish and shrimps, soil bean, milk and dairy products, yogurt, animals and animal products, fertilizer, various kinds of pesticide and weed killer that are used in agriculture, animal, fish and prawn medicines, veterinary preventative medicines, raw and finished materials for animal, fish and prawn feed (not included animal food that used for pets), pure seeds and seedlings of crops, raw materials for cotton, agricultural products, coconut oil, state flag, stationeries, X-ray, absorbent cotton wool, gauze, bandages, hospital sundries to take medicines, surgical mask (once used), cap, surgical glove, masks that used to prevent flu infection, household pharmaceutical and other medicines and traditional medicines, fire engine and hearse, raw materials used in making soap, battery electric vehicles and goods purchased by donated fund. The government offers tax incentives such as offering SMEs exemption from income tax for 3 consecutive years in accordance with Union Taxation Law. The government strives to adjust their tax rates with the enactment of Union Taxation Law each year as a way of rehabilitating economy when the economy slows down. Furthermore, SME loans are offered through different loan programmes. Now, it has been recently announced that Small and Medium businessmen can get loans from 15 private banks as well as state-owned Myanmar Economic Bank (MEB) and Myanmar Agricultural Development Bank (MADB). 7.       In conclusion, the Central Committee for Development of Micro, Small and Medium Enterprises has been planning MSMEs products’ exhibition to encourage SMEs. I happened to visit one of those exhibitions and witnessed a lot of local SMEs’ products, which are displayed well. I gladly realized most SMEs just made use of local raw material. Some SMEs’ products are not well-recognized in the local market, but these products are value for money. These potential SMEs need some assistance in making their quality products well-recognized in the market. Some SMEs do not have enough capital to make mass production and these quality products disappear in the market sadly. Some of these local products equal other imported products. I believe that if these local products are well-promoted with special support from all responsible government organizations, it would be a great thing.  If SMEs’ requirements and government’s export assistance programs coincide, these products can survive in the domestic market as well as foreign market. ReferencesThe Global New Light of MyanmarMyanmar Micro, Small and Medium Enterprise Survey (2019)Myanmar Business Insight Report (2020). Inya Economics.Factors Affecting Propensity to Export: The Case of Indonesian SMEs.  
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