Brussels Presses Beijing Over $1.1 Billion Daily Trade Gap as China’s Export Boosters Persist
Updated
Updated · The New York Times · Oct 6
Brussels Presses Beijing Over $1.1 Billion Daily Trade Gap as China’s Export Boosters Persist
3 articles · Updated · The New York Times · Oct 6
Summary
$1.1 billion a day — that is the EU trade deficit with China that Brussels officials are set to confront in Beijing this week.
China has kept exports strong with a weak renminbi and large tax rebates, policies that lower overseas prices and help sustain domestic growth.
The renminbi is down more than 14% in inflation-adjusted terms from early 2022, while China’s trade surplus has nearly doubled over roughly the same period.
$318.2 billion in export VAT rebates last year — equal to 1.5% of China’s economy — adds to European complaints that Chinese manufacturers enjoy state-backed advantages.
Those supports are becoming harder for Beijing to unwind, leaving trade frictions with Europe likely to persist even as the measures also raise import costs inside China.
How can European leaders effectively counter China’s export boom when they remain heavily dependent on Beijing for critical raw materials?
Will China’s recent elimination of solar export rebates truly ease global trade tensions, or does the undervalued currency negate these efforts?
Are global consumers unknowingly benefiting from China’s domestic economic struggles through ultra-cheap goods flooding international e-commerce platforms?