Beijing [China], March 14 : Business leaders and economists have warned that China's exports are likely to suffer significantly due to the intensifying tariff conflict with the United States, as reported by Radio Free Asia (RFA).
Since President Donald Trump assumed office, the United States has applied a 20 per cent tariff on Chinese products, including a 10 per cent tariff last month and an additional 10 per cent set to take effect on March 4. The growing restrictions have worsened conditions for Chinese exporters, who are already facing rising competition from other countries.
According to the head of an electronics trading company in Shenzhen, "Export volume has shrunk, and business has been snatched away by competitors from other countries."
China's exports increased by 2.3 per cent year-on-year in January and February, falling short of the anticipated 5 per cent growth rate, according to the latest official data. This marks a decline from the 5.4 per cent growth seen throughout the previous year, RFA reported.
The numbers reflect the growing impact of trade restrictions on China's economy.
The tariffs imposed during the first Trump administration (2017-2021) have already led many companies to shift their production to other countries like Vietnam, as cited by RFA. Once known as the "workshop of the world," Guangdong province has become quieter, with fewer factories and a growing presence of trading companies that handle orders without engaging in manufacturing.
Wang Ting, an economist from Guizhou, said manufacturers are still struggling with the tariffs placed on Chinese goods during the first Trump administration. "The increase in tariffs in his second term has made things worse, accelerating the relocation of manufacturing outside of China," Wang stated.
He further highlighted, "China's economy is now in recession, the unemployment rate remains high, and all sectors are in a state of internal competition." The prolonged trade conflict has contributed to weakening confidence among businesses and investors. "Most Chinese people are simply waiting and observing," Wang remarked.
China has been significantly impacted by the tariffs, which have disrupted trade flows, increased production costs, and led to reduced demand for Chinese goods abroad. This has not only slowed economic growth but also prompted businesses to relocate manufacturing to more tariff-friendly countries.
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