What's happened
The US and EU are taking action against China's trade practices, with tariffs being imposed on Chinese electric vehicles. China's industrial overcapacity has been a point of contention, with accusations of unfair government support and pricing practices. The EU and US are responding to China's export boom, which extends beyond high-tech industries, raising concerns about trade imbalances and overcapacity.
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What the papers say
Politico's Sander Tordoir highlights the US and EU's response to China's trade practices, emphasizing the impact on global trade dynamics. The Japan Times discusses China's export boom and the risks of a backlash due to overcapacity and falling prices in various industries. South China Morning Post delves into the concept of Chinese industrial overcapacity and the accusations of unfair trade practices by the US and Europe.
How we got here
China's industrial policy, characterized by overcapacity and government support for key industries, has been a longstanding issue in global trade. The country's export-led growth model has raised concerns about trade imbalances and unfair competition. The recent actions by the US and EU reflect a broader trend of addressing China's trade practices, particularly in industries like electric vehicles.
Common question
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.