China floods the world with cheap exports after Trump's tariffs

With access to US curtailed, Chinese manufacturers have shown they aren't backing down

- Bloomberg

Countries embroiled in tariff talks with US appear reluctant to take on a separate trade war with China.

(AFP)

resident Xi Jinping’s export engine has proved unstoppable during five monthsofsky-high US tariffs, sending China toward a record $1.2 trillion trade surplus.

With access tothe US curtailed, Chinese manufacturers have shown they aren't backing down: Indian purchases hit an all-time high in August, shipments to Africa are on track for an annual record and sales to Southeast Asia have exceeded their pandemic-era peak.

That across-the-board surge iscaus-ing alarm abroad, as governments weigh the potential damage to their domestic industries against the risk of antagonizing Beijing—the top trading partner for over half the planet.

While so far only Mexico has hit back publicly this year— floating tariffs as high as 50% on Chinese products including cars, auto parts and steel—other countries are coming under increasing pressure to act. Indian authorities have received 50 applications in recent weeks for investigations into goods dumping from nations including China and Vietnam, accord-ingtoa person familiar with the matter who asked not to be identified as the information isn’t public. Indonesia's trade minister pledged to monitor a deluge of goods, after viral videos of Chinese vendors touting plans to exportjeansand shirts for as littleas 80 US cents to major cities caused an outcry.

Forall the pain, the chances of more meaningful action are limited. Countries already embroiled in tariffnegoti-ations with the Trump administration appear reluctant to take on a separate trade war with the world’ssecond-largest economy. That's giving Beijing breathing room from US levies at heights economists previously predicted would halve the nation’s annual growth rate.