Mumbai: On 21 November 2024, China’s Commerce Ministry released a detailed nine-point plan to address the challenges posed by high tariffs that could be introduced by Donald Trump when he assumes office in January. Trump’s previous term saw the escalation of a trade war with China, significantly straining bilateral trade relations. Beijing’s proactive measures aim to minimise the economic impact on Chinese companies and stabilise its faltering economy.
The announcement addresses “unreasonable foreign trade restrictions” and aims to secure “a good external environment for imports.” The potential reintroduction of high tariffs by the US could further harm US-China relations, endanger Chinese export profitability, and potentially derail China’s economic growth targets.
Key highlights of China’s nine-point plan
According to the South China Morning Post, the nine-point plan includes:
Expansion of credit insurance for exporters.
New financing options for international trade businesses.
Strengthening cross-border e-commerce.
Increasing exports of specialty agricultural products and critical commodities.
Boosting imports of essential equipment and energy resources.
Introducing visa-free entry policies to promote personnel exchanges.Encouraging state governments to improve domestic trade cooperation.
The measures also focus on fortifying trade ties with other nations to mitigate reliance on US markets. Zhang Zhiwei, the president of Pinpoint Asset Management, emphasised that these steps are not solely a reaction to US tariffs but also address broader global trade challenges. “The recently introduced measures are not only a response to renewed US tariffs but also to growing tariffs and non-tariff barriers worldwide, which require Chinese exporters to enhance their ability to handle future trade disputes and investigations more proactively,” he told South China Morning Post.
Impact of tariffs on China’s trade with the US
China’s exports to the US amounted to USD 427.2 billion, with USD 147.8 billion lost to tariffs. In retaliation, China imposed its own tariffs on American imports, leading to economic strain on both sides. Any increase in US tariffs could exacerbate challenges for Chinese exporters and further stress its economy.
Beijing’s nine-point plan serves as a crucial response to these threats. By safeguarding domestic and international trade, China aims to counteract the anticipated impacts of Trump’s high-tax policies and stabilise its economy amidst growing global trade tensions.
China introduces a nine-point plan to tackle Trump’s proposed high tariffs, focusing on credit insurance, trade financing, and cross-border e-commerce to safeguard its economy. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
