The Chinese President Xi Jinping’s export engine has proved invincible during the five -month sky -touched American tariff, leading to a faster moving China to a record $ 1.2 trillion trade surplus. Despite the tariff being imposed by the US, Chinese manufacturers have shown that they are not backing down. In August, Indian procurement reached its all-time high level, Africa is on the way to make the shipment annual records and has crossed its peak of the era of epidemic in Southeast Asia. If this export increases, the demand for indigenous goods will start decreasing. India may also have to face its loss.
China is escaping from tariff
The Trump administration imposed heavy tariffs on China, but the rest of the countries are avoiding taking strict steps against China. They do not want to spoil their trade talks with America. Christopher Beddor of Gevacle Dragonomics says that many countries do not want them to be considered to break the global trade system. Some countries are also reluctant to put tariffs on China to make America happy. China is getting the benefit of this. He is strengthening his grip worldwide on the basis of cheap goods. The country is taking advantage of this opportunity and transporting goods to countries around the world.
Caution of the world, the tricks of China
Many countries are trying to save their economy from cheap goods in China, but are taking careful steps. For example, South Africa, Africa doubled the export of Chinese cars, but the trade minister there has sought more investment from China instead of putting tariffs. In Chile and Ecuador, the users of Chinese e-commerce company Temu increased by 143%, so these countries have secretly put tariffs on cheap imports. At the same time, Brazil gave a tariff-free opportunity to the Chinese electric car company BYD, so that it would increase local production there.
But if the US united the rest of the countries against China, then it may increase difficult for Beijing. Chang Shu and David Qu of Bloomberg Economics say that China can immediately impose counter -tariffs, but this can remove its allies.
China Shock 2.0
Trump threatened a heavy tariff in April, but before that the emerging markets were troubled by the flood of Chinese goods. The former President of Indonesia spoke of 200% tariff to survive the local industry. Brazil also increased the tariff on Chinese steel. Vietnam took temporary steps against Chinese online retail companies. But China’s huge factory and their cheap prices are overshadowing these efforts. According to Arthur Crode of Gevacle Dragonomics, China’s exporters are so powerful that they face tariffs. They shift production to countries with transmission or low tariffs.
China dominates in India too
Last month, China’s export to India reached $ 12.5 billion, which is a record. The main reason behind this is that companies like Apple are making iPhones in India, but their parts and machines are still coming from China. In July, China sent India $ 1 billion computer chips and billions of phones. This year’s exports have been equal to the whole year of 2021.
Demand to control export
However, DGTR, the investigation unit of the Ministry of Commerce, has advised to impose anti-dumping fees for five years on cold rolled non-oriented electrical steel imported from China. Its purpose is to protect Indian companies from cheap imports. DGTR investigation revealed that this product is being sold at less than the normal price in India, causing dumping. It has been recommended to impose a fee of $ 223.82 per tonne on some Chinese companies and $ 414.92 per tonne on some.