What's happened
As the China International Supply Chain Expo opens, tensions rise with President-elect Trump's proposed tariffs on Chinese imports. Chinese officials emphasize the need for stable trade relations, while the potential for a renewed trade war looms large, impacting global supply chains and economic growth.
Why it matters
What the papers say
According to the South China Morning Post, Vice Commerce Minister Wang Shouwen stated that Trump's tariffs would not resolve the US trade deficit and would instead increase consumer prices, highlighting the negative impact on both economies. Meanwhile, the Economist Intelligence Unit's Xu Tianchen noted that while US-China supply chains are decoupling, third countries are increasingly involved in processing Chinese goods for export to the US. This suggests a complex adaptation to the changing trade landscape. Additionally, the Independent reported that a 60% tariff could significantly hinder China's economic growth, emphasizing the stakes involved in the upcoming trade negotiations.
How we got here
The US-China trade relationship has been strained since the trade war began in 2018, with tariffs imposed on hundreds of billions of dollars in goods. Trump's re-election campaign promises to escalate these tariffs, raising concerns about further economic disruption.
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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.
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