China trade tased from all sides, backing Beijing into an economic bind: analysts
‘The risk of intensifying trade wars is very real’
China’s export growth faces increasing risks as pressure to raise import tariffs spreads beyond advanced countries to less-developed ones amid tit-for-tat retaliations and concerns about excess capacity, according to analysts.
Mounting tariffs on Chinese exports could pressure growth because trade is so crucial to the world’s second-largest economy, said Christopher Beddor, deputy China research director with Gavekal Dragonomics in Hong Kong.
“Strong exports are papering over severe weaknesses in the Chinese economy,” Beddor said. “If external demand starts to flag because of tariffs, officials will suddenly need to start making some very uncomfortable trade-offs between controlling debt and maintaining relatively high growth.”
The list of countries raising tariffs includes the US, the EU and Canada, as well as emerging markets such as Brazil, Mexico, Turkey and India. Japan has also launched an anti-dumping investigation into a type of rubber product.
US President Joe Biden’s administration intends to impose a raft of new and raised tariffs on China on September 27, vowing to protect strategic industries from its state-driven industrial practices.
