Chinese Companies React to Tariffs, Chip Ban With Price Renegotiation, Non-US Supply Chain Expansion; Own Tariffs on US Imports Incentivize Use of Chinese Chips, Improve Price Competitiveness

Chinese drug maker Kunshan Asia Aroma Corp. responded to investors on April 14 saying it is negotiating with U.S. clients to adjust prices due to the tariffs while also shifting productions of high-tariff products to Thailand and expanding its domestic market sales, the Securities Daily reported.

Nvidia business partner and software and hardware original design manufacturer Huaqin Technologway Co. responded in an investor interaction platform on April 16 on the impact of the U.S. barring Nvidia from selling its H20 chip in China. The company said it has not received any notice to change current orders from clients and H20 uncertainties were already expected since the second half of 2024. The supply chain is fully prepared for the H20 restrictions and the company believes the current inventory can support a normal product delivery for the first half of 2025.

Intelligent home robotics developer Beijing Roborock Technology Co. said during an earnings briefing on April 16 that the company is taking various measures including price adjustments, overseas supply chain collaborations in response to the tariff war, the Shanghai Securities Daily reported. Its Vietnam factory is keeping a regular delivery of products and the company aims to expand the Europe and APAC markets.

Laser Technology developer Huagong Tech Company also said in an earnings briefing on April 16 that the reciprocal tariffs is an opportunity to the company rather than a challenge, the Securities Times reported. The company has production bases or subsidiaries across Australia, U.S., Vietnam, Korea and Hungary and the company can expand production capacities in countries that had lower tariffs. China’s 125% tariffs on U.S. export products can also help increase the competitiveness of some of the company’s products by adapting to its own chips and bringing down end products’ prices.

Due to market volatilities caused by tariffs, companies in China’s A-share market initiated a wave of share buybacks. In April, a total of 110 listed companies had announced their share buyback proposals or increasing the amounts of buybacks, outnumbered the total buybacks in February to March.