Despite tough American tariffs, China's export sector has shown a record trade surplus of $1.2 trillion, raising global concerns about risks to the national economies of other countries. This is reported by UNN with reference to Bloomberg.
Details
Over the past five months, China's export strategy has shown unexpected resilience. Shipments to India have risen to an all-time high, the African direction has reached a record level, and sales volumes in Southeast Asia have exceeded even the peak figures of the pandemic period.
This forces governments of various countries to balance between protecting their own producers and an unwillingness to openly conflict with China - the world's second-largest exporter and a key partner for more than half of the world's states.
China has proven its ability to quickly master new markets and gain share abroad
Although only Mexico has publicly imposed tariffs of up to 50% on Chinese products, pressure on governments is growing in other regions. India has received dozens of requests to investigate the dumping of Chinese goods, Indonesia is preparing measures after the mass sale of cheap products on social networks, and in Latin America, Chile and Ecuador are already restricting imports.
Analysts warn that China's excessive focus on exports only deepens internal imbalances. Industrial companies' profits fell by 1.7% in the first seven months of the year, and deflationary trends threaten to become the longest in decades.
This complicates Beijing's plan to reorient the economy towards domestic consumption.
Addition
Given the above, it turns out that China is avoiding American tariffs and reorienting its goods to other markets.
- India, Africa, Southeast Asia, and Latin America are already flooded with cheap Chinese imports.
- Governments are afraid to impose high tariffs: on the one hand, they need to protect the economy, and on the other hand, they risk spoiling relations with China, a key partner.
- Within China itself, this is also a problem: companies are lowering prices to sell abroad, and this only deepens deflation and falling profits.