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Senin, 10 Juni 2024

China's Economy Dealt Trade Blows - Newsweek

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Turkey announced a new tariff on Chinese vehicle exports Saturday, joining a growing number of developing nations seeking to shield local industries from perceived Chinese overcapacity.

The 40 percent tariff would target traditional and hybrid vehicles from China to "increase and protect the decreasing share of domestic production," the Turkish Trade Ministry said.

Chinese state news outlet Xinhua previously cited industry sources as saying China's market share in the Turkish automobile industry exceeded 4.5 percent in 2023 and was on track to reach 10 percent this year.

Newsweek has reached out to Turkey's Trade Ministry and China's Foreign Ministry via written requests for comment.

The moves come amid heightened trade tensions between the world's second-largest economy and the U.S. and European Union, which have both accused Beijing of flooding markets with its heavily subsidized products to alleviate tepid domestic demand. China denies it has an overcapacity problem and says detractors are trying to curb China's legitimate development.

Increasingly, Chinese trade partners in the Global South have joined the chorus of complaints about China's exports and moved to shield local industries.

Responding to a surge of Chinese steel, Brazil, Mexico, and Chile have announced higher tariffs on the alloy in recent weeks amid fears low-cost imports could cost jobs.

Newsweek reached out to the Brazilian embassy in Washington with a written request for comment.

Bloomberg cited Margaret Myers, director of the Inter-American Dialogue's Asia and Latin America Program, as saying the tariffs mark a "test of China's interests and intentions" and of Latin American countries' "resolve in challenging what is a critical economic partner."

The European Commission, the European Union's executive branch, is expected to announce tariffs on Chinese electric vehicles this week after a monthslong investigation.

Worker Shovels Coffee Beans
View of coffee beans drying at San Victor farm in Los Verdes village, Fraijanes municipality, 35 kilometers of Guatemala City on January 17, 2013. Guatemalan said in May China has banned imports of coffee and... View of coffee beans drying at San Victor farm in Los Verdes village, Fraijanes municipality, 35 kilometers of Guatemala City on January 17, 2013. Guatemalan said in May China has banned imports of coffee and macadamia nuts from the Central American country, an ally of Beijing-claimed Taiwan. John Ordonez/AFP via Getty Images

The move could usher in a new round of trade tensions with China, which last month announced it was launching its own anti-dumping investigations into industrial plastics from the E.U., U.S., Japan, and Taiwan.

E.U. leadership and the Biden administration have both said China's heavy state subsidies in this and other industries put western companies at an unfair disadvantage.

In Guatemala, trade tensions with China have taken on an additional geopolitical element.

Last month, Guatemalan media reported that China, Guatemala's second-largest trade partner, had blocked imports from the Latin American country, including sugar, coffee, and macadamia nuts.

The apparent ban came after Guatemalan President Bernardo Arevalo attended the inauguration of Taiwan's President Lai Ching-te and spoke with his Taiwanese counterpart in a virtual meeting. Guatemala is one of only a dozen countries that still maintains official diplomatic ties with Taiwan, which China claims as its territory.

Asked about the ban, Chinese Foreign Ministry spokesperson Wang Wenbin told reporters: "The situation is not conducive to cooperation between Guatemala and China, including the export of Guatemalan products to China."

Newsweek reached out to the Guatemalan embassy in Taiwan and the Chinese Foreign Ministry with written requests for comment.

Chinese exports last month were up 7.6 percent in real dollar terms over May 2023, according to customs statistics. New export orders slowed increased for the fifth consecutive month, though at a slower pace since April, according to the Caixin Manufacturing Purchasing Managers Index.

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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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China's Economy Dealt Trade Blows - Newsweek
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