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a trade war with the US is biting into business in China's manufacturing heartland but some aren't taking it sitting down this factory makes and exports tactical gear the owner shoe Klein says about half his businesses with customers in the U. S. but these bullet proof vests are not headed for American shores a day after US president Donald Trump ramped up tariffs on Chinese made goods last fall she %HESITATION made a decision to open a new factory for his US customers nearly two thousand miles away in the southeast Asian country of Myanmar waiters choice Joe travel to one joke China to talk to she without his decision , so during the Middle East zero trump's tariffs mean that any bulletproof vest made in shoes China factory today comes with a huge markup once it enters the U. S. thanks to import duties shoe says relocating was the right solution to me my is on I think the trade war will definitely continue so we're gonna try and boost sales here in China and were also on you markets in Southeast Asia and Europe shoe has six hundred workers in Myanmar churning out things like kit bags and rifle pouches for his US customers and business is so good his team is struggling to keep up with orders shoot isn't the only Chinese factory boss setting up shop in Southeast Asia according to official data from Myanmar during the last fiscal year approved Chinese projects jumped by five hundred and eighty five million dollars shoes factory manager in Myanmar makes no bones about the benefits in one of the doctors Ahlers here a lower so we can hire three me and more workers for the price of just one Chinese worker and we also pay less in taxes compared to China show me soon have more company trump and Chinese president xi Jinping are due to meet on the sidelines of the G. twenty this week in Osaka but trump says that if the two countries can't reach an agreement he's ready to slap twenty five percent tariffs on another three hundred billion dollars of Chinese goods leaving no Chinese exporters on touched