Don’t Want Tariffs, Want Cooperation: California Business Community Eager to Strengthen Trade Ties with China

Don't Want Tariffs, Want Cooperation: California Business Community Eager to Strengthen Trade Ties with China

Summary

Nearly 500 Chinese and US political and business leaders attended the 2025 China-California Economic Forum in Los Angeles on June 2. California business representatives jointly called for 'No tariffs, only cooperation. ' Maria Salinas, president of the Los Angeles Area Chamber of Commerce, said that China is Los Angeles' third-largest export market for goods, and that the chamber has more than 1,400 member companies employing over 650,000 people.

Jim Wanderman, chairman of the Bay Area Council, pointed out that tariffs bring uncertainty and are not a good way to improve the economic structure. Stephen Cheung, president of the Los Angeles World Trade Center, emphasised that the relationship with China is California's most important foreign relationship. Several small business owners reflected that tariffs have caused operational difficulties.

For example, Hollywood supplier Morris said tariffs could crush his company; UV equipment business owner Tiberi said parts cannot be replaced. California Governor Newsom filed a lawsuit against the Trump administration on April 16 over tariff issues. During the forum, small and medium-sized enterprises actively sought direct connections with Chinese companies.

Commentary

The opposition to tariffs from California's business community reflects the pressure trade protectionism places on domestic US businesses. For New Zealand small and medium-sized enterprise owners, the Sino-US trade friction could have dual effects: on one hand, China may shift to increase imports of agricultural and dairy products from New Zealand due to uncertainty in the US market, creating short-term opportunities; on the other hand, if the cooperation model between California and China (such as local economic forums) progresses, it could strengthen Sino-US economic ties, indirectly weakening New Zealand's substitute position. Currently, attention should be paid to China's retaliatory tariff list against the US.

If it involves New Zealand's advantageous product categories, supply chains need to be arranged in advance. In addition, the approach of California SMEs seeking direct access to the Chinese market is worth emulating. New Zealand companies can proactively participate in Chinese regional exhibitions through industry associations or the Trade Development Bureau, reducing reliance on single agents.

In the long run, under the trend of global trade fragmentation, New Zealand needs to deepen its presence in China's second- and third-tier cities while maintaining ties with places like California to diversify risks.

Keywords: California, trade with China, tariffs, cooperation, forum, SMEs, business community, Governor Newsom, lawsuit, supply chain


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Source: People's Daily Online International

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