Chinese Firms Rush to Build Overseas Factories to Avoid Trade Friction

Workers check laptop parts in a factory in the Hangyong Auto Industrial Park, in Lu'an City, Anhui Province, China. The factory produces equipment for Toshiba, Matsushita and other international brands. STR/AFP/Getty Images

Many of China’s A-share listed companies are rushing to set up factories overseas to avoid the rising tariffs brought about by the Sino-U.S. trade war.

Chinese media 21st Century Business Herald reported on Dec. 27 that China’s export-oriented listed companies are expanding their factories overseas. Among them is KingClean Electric Co.—a company that creates cleaning appliances and garden tools— that says its overseas business accounted for 67 percent, according to its 2017 annual report.