China's export push is backfiring amid global pushback as countries raise barriers on Chinese exports
Sep 12, 2024
New Delhi [India], September 12 : China, the world's largest exporter, is facing growing challenges as many countries take steps to reduce their reliance on Chinese products, according to a report by Moody's Analytics, titled "How Everything Came To Be 'Made in China'.
The report explains how China's rapid rise in manufacturing has sparked protectionism worldwide, leading to increasing tariffs and trade barriers against Chinese goods.
For nearly 30 years, China has built a massive manufacturing industry, producing everything from kitchen appliances to solar panels and electric vehicles.
Today, Chinese products dominate global markets, and the label "Made in China" is everywhere. However, as China continues to push its exports, countries like the US, the EU, and Canada have started raising tariffs on Chinese items, including steel, aluminum, solar panels, and low-cost retail goods.
Many other countries, including Brazil, Mexico, Turkey, Pakistan, and India, have also taken steps to protect their local industries by launching investigations into Chinese exports or imposing their own trade barriers.
This pushback reflects a global concern over China's dominance in manufacturing. China's ability to produce goods on a massive scale makes it difficult for other countries to compete.
As a result, even traditional manufacturing powers and developing nations are struggling to keep up, especially as the global economy becomes more focused on domestic production rather than relying on imports.
As these barriers continue to rise, China faces a shrinking number of international markets for its exports. In response, Chinese leaders are focusing more on growing their domestic economy by encouraging local consumption.
With fewer countries willing to accept Chinese goods, China hopes to rely more on its own population to drive economic growth.
The report suggests that while other manufacturing hubs are emerging and global trade policies are shifting, China's dominance in manufacturing won't disappear anytime soon.
Its large-scale production capabilities and expertise will keep China as a key player in global trade for years to come. However, the increasing protectionism from other countries may force China to rethink its long-term strategy and focus more on domestic markets in the future.
