The trade war, accompanied by a slowdown in China’s economy and the impact of Covid-19 pandemichas resulted in the World Bank predicting a significant slowdown in the global economy as well as a lower forecast for economic growth in the US and China, reported The Hong Kong Post.
“China trade policy with respect to the United States has been more reactionary than anything else, responding to, rather than initiating, changes on a tit-for-tat basis, “said Jayant Menon, a visiting senior researcher at ISEAS-Yusof Ishak Institute’s Regional Economic Studies Program in Singapore.
China has targeted imports from even other countries that it sees operating in the US sphere of influence. Chinese exporters have stopped importing Australian coal, sugar, barley, lobsters, wine, copper and timber since 2020.
Last year, Japan filed a formal complaint to World Trade Organization over anti-dumping duties imposed by China on imports of stainless steel since July 2019, a move that Beijing described as “regrettable”, the report said.
But while China restricted its trade imports from these countries, its export to Australia, Japan and the United States in the following year was worth $ 648.7 billion, the report said, adding that the large exports were mainly due to the impact of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement, which China had concluded the previous year.
China will try to manipulate free trade agreements and international markets to offset the impact of the trade war and the economic downturn, the report added.
China will regulate access to credit in international trade, help companies overcome challenges and make greater use of free trade agreements that have been negotiated or signed to “integrate and make progress,” the report quoted Li Xingqian as saying. Director General of International Trade of the Chinese Ministry of Commerce.
But despite its ambitions to create a new order in global trade, China will remain dependent on the United States for innovation because much of its information technology (IT) sector is currently focused on manufacturing rather than innovation, the report said, citing Alan Chong, an assistant. professor at the Singapore S. Rajaratnam School of International Studies.