As trade tensions with the United States threaten to accelerate the decoupling between the world’s two largest economies, Chinese companies are accelerating the removal of their foreign components.
In the weeks since President Donald Trump reached China with huge tariffs, more than two dozen companies listed in Shanghai and Shenzhen told investors that they are increasingly working to buy domestic investments to replace foreign products, or expected to benefit from peer localization purchases.
Financial documents reviewed by the Financial Times were issued by companies spanning the semiconductor, chemical and medical equipment sectors. They demonstrate the lasting impact of Trump’s trade war by implementing permanent supply chain reordering.
Beijing has long been promoting industrial self-sufficiency and has been aimed at enhancing economic independence while maintaining selective global ties through policies formulated by China in 2025 and President Xi Jinping's "dual circulation" strategy.
Trump’s tariffs strengthened that momentum, which is further impetus for Chinese companies to try to fight geopolitical backlash and Beijing’s retaliation against imports from the United States, a figure as high as 125%.
Rhodium Group analyst Camille Boullenois said tariffs will only increase Beijing’s desire to become more self-sufficient in Chinese companies, and is the author of the latest report on China’s 2025 plan. "They obviously feel the urgency," she added. "This will signal them to speed up as much as possible.transparent
People familiar with the thinking of Chinese officials say Beijing sees trade conflicts as a test of its self-reliance policy. They added that officials believe the initiative has adapted China to the latest U.S. pressure.
"They think China can survive now without anything from the United States or the West, which gives the country the power to resist Trump's trade needs," said one of the people.
Estun Automation, one of China's leading industrial robot manufacturers, told investors in its annual report last month that it "quickly captured major customers previously held by foreign brands" and optimized its own supply chain to "add alternative raw materials to increase raw materials."
A manager at the company said adding localization “cuts costs”. "(It's) not just a trade war - the global economy is unstable. We hope to be able and ready to switch (suppliers)" they said.
State-owned emergency equipment maker China Harzone Industry Corporation told investors last month that while it has "significantly promoted domestic replacement" for years, it will increase its share of local suppliers to replace its few components that still come from North America in response to tariffs.
The company added that it will also develop a dual circulation model for exports from Southeast Asia, Africa and South America.
Some analysts believe that China's plan to develop plans, launched in 2015, triggered a trade war in Trump's first term, which allowed clear goals of domestic companies to occupy the strategic sector.
The EU Chamber of Commerce in China's latest report says the policy has been successful in industries such as electric vehicles, shipbuilding and railway equipment, and Chinese manufacturing is now leading - but warned it also encourages inefficient investment and super action in certain sectors and meets tensions in the trade party.
China's strengthening drive to prioritize domestic procurement may also affect suppliers in third countries.
Thinkon Semiconductor, a silicon material provider based on the help of the help of the help of the help of Thinkon Semiconductor, told investors that it would cut foreign suppliers to “improve risk resilience.” A manager of the company said it does not import U.S. products and is working to replace chemical reagents from Japan, South Korea and Europe.
“To avoid further risks, we will continue to advance our localization efforts,” the person said.
antun Automation and Thinkon Semiconductor did not respond to requests for comment.
Zhixing, who works in corporate affairs by Hunan Province's bearing manufacturer Hunan Sund Technology Corp, said China's retaliatory tariffs are prompting manufacturers to abandon U.S. bearings used in steam and gas turbines.
"They are reaching out to us to increase production," he said.
"Now, everyone is talking about alternatives," he added. He predicts that in the long run, many customers will switch forever. “This will be a step-by-step alternative process.”