Flooring-Maker’s U.S. Customs Problem Could Spell Trouble for Chinese Manufacturing in Southeast Asia

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The U.S.-China trade war has led to many Chinese manufacturers establishing factories in Vietnam and other Southeast Asian countries to take advantage of the lower tariffs. Photo: VCG

A Chinese flooring producer’s warning over affected revenues and production at its established factories in Vietnam is fueling some concerns that the U.S.’ recent stepped-up enforcement of tougher import rules could hurt Chinese manufacturing in Southeast Asia.

Vinyl flooring manufacturer Zhejiang Walrus New Material Co. Ltd. (003011.SZ) has significantly scaled back production at its plants in Vietnam as a result of American customs rules requiring exporters to detail the sources of their raw materials before shipping finished goods to the U.S.