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China Risks Trade War on Two Fronts as Low-Tech Exports Soar, Too.
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- Source:Bloomberg.com. 6/5/2024, pN.PAG-N.PAG. 1p.
- Subject Terms:
- Additional Information
- Subject Terms:
- Abstract: China's export boom extends beyond high-tech industries, which could lead to a backlash from countries that have previously stayed out of the trade war. The European Union is considering tariffs on Chinese electric vehicles, following similar moves by the US and potentially Canada. China's surplus in manufacturing trade, including products like steel and animal feed, is increasing, and falling prices could trigger reactions from more countries. Concerns about overcapacity in areas tied to housing could lead to the dumping of materials in overseas markets. Anti-subsidy and anti-dumping measures against Chinese goods have already been taken by various countries. China's iron and steel exports hit a record high, and falling prices have led to tariffs being imposed by Latin American nations. The slowing domestic economy is also affecting demand and prices for metals. China's exports of soybean meal have increased significantly due to less demand for pork. The manufacturing surge in petrochemicals is disrupting industries in neighboring countries. Cheaper Chinese goods are welcomed in some nations, and tariffs are not always designed to keep China out. One Chinese policymaker has suggested implementing a version of the Marshall Plan to lend money and provide technology to developing nations for renewable energy industries. Tensions in global trade pose a threat to the global economy, with the potential for trade decoupling and the formation of rival blocs. [Extracted from the article]
- Abstract: Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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