A prominent figure in the global shipping industry has pointed out that China's foreign trade flows will persist despite geopolitical challenges.
Speaking in an interview with China Global Television Network (CGTN) at the World Economic Forum in Davos on Monday, Chavalit Frederick Tsao, chairman of Singapore-based Tsao Pao Chee Group (TPC), highlighted the impact of economic forces, geopolitical challenges, and tariffs on China's trade strategy, emphasizing the need for businesses to adapt and diversify in response to a rapidly restructuring global economy.
The TPC is a fourth-generation family business founded in China in the late 1800s.
"If you look at China's strategy, it's very well laid out -- where they are going, how do they look at the redistribution, how do they look at the whole planned rural-urban relationship, international relationship. It's a very well-thought through process and policies. Of course the reality is you have to evolve it and dance with the situation. As I said, you need to flow in, negotiate barriers and trade is one of the elements in that big policy. And everybody know trade is good for economics, how we trade will be influenced by geopolitics right now. But you cannot stop the water from flowing. It just flows through the obstacles," said Tsao, who was also former head of The International Association of Dry Cargo Shipowners (INTERCARGO).
When asked to comment on the potential for increased tariffs under the administration of U.S. President Donald Trump, the buisnessman also noted the act of imposing tariffs will not stop trade, but consumers will eventually pay the price.
"There is a lot of fear, but the last time tariff was snapped on China, trade increases rather than reduces. Now the cost of trade might be different, but eventually who pays? Consumers pay. So [we] cannot stop trade. It's the cost of trade, because barriers create resistance. It's not efficient, so the end user pays," Tsao said.

China's foreign trade will persist despite geopolitical challenges: shipping tycoon