- विज्ञापन -
Beijing: Business leaders and economists have expressed concerns that China’s exports could face significant challenges due to the ongoing escalation of tariff conflicts with the United States, according to Radio Free Asia (RFA).
Since the tenure of former President Donald Trump, the U.S. has imposed a 20% tariff on Chinese goods, including a 10% tariff last month, with an additional 10% set to take effect in March. These increasing restrictions have exacerbated difficulties for Chinese exporters, already grappling with heightened competition from other nations.
An electronics trader from Shenzhen noted, “Export volumes have decreased, and our business is being taken over by competitors from other countries.”
Official data reveals that China’s exports grew by only 2.3% year-on-year in January and February, falling short of the projected 5% growth. This marks a slowdown compared to the 5.4% growth seen in the previous year, signaling the growing impact of the tariff restrictions on China’s economy.
The tariffs imposed during Trump’s first term (2017-2021) have already led many manufacturers to move production to countries like Vietnam, according to RFA. Guangdong province, once a hub for global manufacturing, has seen a decline in factories, with a rise in trading companies managing orders without direct manufacturing.
Economist Wang Ting from Guizhou noted that manufacturers are still reeling from the tariffs imposed during Trump’s first term, and the additional tariffs in his second term have only worsened the situation. He added, “This has accelerated the relocation of manufacturing outside of China.”
Wang also pointed out that China’s economy is now in a recession, with high unemployment rates and increased internal competition across various sectors. The extended trade conflict has led to a loss of business and investor confidence. “Most Chinese people are just waiting and watching,” he observed.
The tariffs have severely disrupted trade flows, increased production costs, and reduced demand for Chinese exports. As a result, China’s economic growth has slowed, and many businesses are relocating their manufacturing operations to countries with more favorable tariff conditions.
