Chinese Companies Establish Schemes to Evade Trump's Tariffs.

Chinese companies are looking for ways to circumvent tariffs

According to the Financial Times, Chinese companies are increasingly using third countries to change the origin of their products in order to avoid the high tariffs imposed by Donald Trump.

'The USA imposed tariffs on Chinese goods? Transit through Malaysia to 'transform' them into goods from Southeast Asia!'

Chinese business representatives publicly discuss such schemes. Baitai Lighting company from Zhongshan admits they can sell goods to neighboring countries, and then they enter the United States through other countries, which helps to reduce tariffs.

Chinese Companies' Evasion Schemes

As part of these schemes, customs services offer a full range of services for changing packaging, labels, and certificates of origin. For example, at the Malaysian port of Klang, Chinese goods are transshipped, labeling is changed, and new documents with 'new' origin are arranged.

Such practices raise serious concerns in Asian countries. The South Korean customs reported that in the first quarter of 2025, about 21 million dollars worth of falsified country of origin was discovered in goods, most of which were intended for the American market.

Vietnam and Thailand have also expressed outrage at the situation and urged businesses to more closely check the origin of raw materials and prevent document falsification.

In the context of rising tariffs between the USA and China, companies are using creative approaches to reduce costs. Experts believe that the further development of such evasion schemes could lead to a significant increase in customs fraud in the region.