Posted 3/18/2024, 4:28:18 PM
China's Export Boom Drives Trade Tensions as Cheap Cars, Chips Flood Global Markets
- Chinese factories flooding global markets with cheap cars, appliances, chips, etc., renewing trade tensions with U.S. and Europe
- China's manufacturing output dwarfs domestic needs, with overcapacity threatening U.S. factory jobs and administration's hopes for more jobs
- China invested in factories to meet pandemic demand and develop strategic industries like EVs, now exporting 5M cars annually
- Europe found evidence China subsidizing EVs, harming Europe automakers; U.S. shielded by auto tariffs for now
- IMF warns China's manufacturing subsidies create excess capacity, tilt playing field; solution is boosting purchasing power of Chinese consumers
