China ‘at risk’ of wider decoupling after US, EU as Asean trade partners balk at imports flood
- Word of caution comes from Chinese trade consultancy with the commerce and agricultural ministries and customs authorities among its clients
The warning from Dalian Infobank, a Chinese trade data and analysis agency, comes as the world’s No. 2 economy faces increasing trade frictions globally.
In May, the United States announced new tariffs on US$18 billion worth of Chinese imports, followed by the European Union’s plans to impose extra duties on China-made electric vehicles (EVs), taking effect on Thursday. The EU move has since been mirrored by Turkey, with Canada also weighing similar measures.
Days after the US announcement, Treasury Secretary Janet Yellen called on the Group of 7 developed economies to build a “wall of opposition” against Beijing’s industrial policies, while noting that she was not asking that they copy the US tariffs or closely coordinate their trade policy responses.
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US Treasury chief Janet Yellen leaves China after ‘difficult conversations’, overcapacity gripes
According to a Dalian Infobank report, the latest US tariff package might be followed by more as the US presidential race heats up, a time when candidates are usually prone to taking a harder line on Beijing.
