Beijing’s trade and economic activities have raised serious concerns in Washington, D.C., with Secretary of State Antony Blinken expressing worries about Chinese products being dumped in the American market during his recent visit to China. This follows similar concerns raised by US Treasury Secretary Janet Yellen, highlighting Chinese overproduction and the flooding of the American market with subsidized products. President Joe Biden has even proposed tripling tariffs on steel and aluminum imports from China to address the issue. The US is determined to rein in China’s exports, which are seen as a threat to American jobs and businesses. The Biden administration has continued the tariffs imposed by the Trump administration on Chinese imports, aiming to protect American workers in key industries like steel and aluminum.
China’s aggressive export strategy has been met with criticism from the US and other countries as it has led to a surge in China’s surplus in goods trade, doubling since the pandemic. China’s defense of its trade practices, accusing those who criticize them of promoting protectionism, has further fueled tensions with the US and the EU. The flooding of the global market with cheap Chinese products has raised concerns about the impact on local manufacturing and job creation efforts in the US and other countries. Despite this, China remains focused on profits, with its first quarter GDP rising by 5.3%, driven by manufacturing and exports.
However, it is China’s dominance in the shipbuilding industry that has particularly alarmed the US and global markets. American labor unions, along with steel representatives, have petitioned the US Trade Representative to probe China’s unfair practices in distorting global markets in the maritime, logistics, and shipbuilding sectors. President Biden has approved an investigation into Beijing’s actions in these sectors, citing harm to American workers and shipbuilders. China’s state-backed companies have become leaders in financing, building, and operating port terminals globally, raising concerns about economic and security implications. Experts worry about the strategic advantage China gains from its control over logistics worldwide, especially amid increasing tensions between China and the US in the Indo-Pacific region.
Ultimately, the escalating tension between China and the US over trade and economic practices is a cause for concern on the global stage. The US is determined to address China’s trade policies, including dumping of products in the American market, and unfair practices in key industries like steel and aluminum. China’s aggressive export strategy, coupled with its dominance in the shipbuilding sector and control over global logistics, has raised alarms worldwide. As tensions continue to rise, strategic thinkers are closely monitoring the implications of China’s economic activities and potential ramifications on global trade dynamics. The outcome of this ongoing trade dispute and investigation into China’s unfair practices could have far-reaching effects on the global economy and security landscape.
