Skip to main content

China's Export Strategy Causes Global Market Havoc: Report

China's 'Made in China' products have already established a firm foothold in the international market, surpassing the expansion of any other nation in history. Manufacturers all over the world are under tremendous pressure due to the flood of cheaper Chinese goods. China is now focussing more on exporting in an effort to take the lead in the world's manufacturing sector.

According to a report in The Wall Street Journal, Chinese President Xi Jinping has increased his focus on the manufacturing sector, with a high percentage of production going to export, in response to the slow economic development that his government is facing in recent past. China is once again ramping up its massive export machinery, giving rivals little opportunity to survive in the market.

The impact of China's manufacturing dominance is evident in various sectors. For instance, a Massachusetts startup called CubicPV betting on silicon wafers, a high-tech component in solar panels. Buoyed by President Biden's climate legislation enacted two years ago, with billions of dollars in tax credits and government loans, CubicPV announced plans in late 2022 for a $1.4 billion wafer plant in Texas.

Since then, China has nearly doubled its output of silicon wafers-way more than it needs. The extra wafers had to go somewhere, and they went overseas, pushing prices down by 70%. CubicPV had to halt its production plan early this year, putting engineers and other employees out of work, citing "a distorted market as a result of China's overcapacity."

In another case, thousands of miles away, in Chile, iron ore miner and steelmaker CAP is struggling with China's continued commitment to low-end commodity manufacturing as an onslaught of cheap Chinese metal hits its shores. The firm said this month that it would shutter its giant Huachipato steel mill in central Chile indefinitely, with the loss of some 2,200 jobs. The company said it can't compete with low-priced Chinese metal even after the government raised tariffs on steel bars and other imported products.

Beijing's strategy of bolstering its manufacturing sector through aggressive exports is creating significant challenges for businesses around the world. This escalating trade tension raises concerns about the potential for a new global trade war.

The WSJ report further mentioned that other countries have opened antidumping investigations to see whether Chinese goods are being sold below fair value. India is examining Chinese pigments and chemicals. Japan is looking at electrodes. The UK is investigating imports of excavators and biodiesel, while Argentina and Vietnam are probing Chinese microwave ovens and wind towers.

Xi Jinping's "establish the new before breaking the old" strategy prioritizes building new industries like EVs and semiconductors while maintaining traditional ones like steel. Despite acknowledging overcapacity, China continues to invest heavily in manufacturing, driven by concerns about industrial security and economic stability. This approach is straining global trade relations and causing economic hardship in other countries.



from NDTV News- Special https://ift.tt/oNVI9qy
Labels:

Comments

Post a Comment

Popular posts from this blog

All About The 'Benadryl Challenge' That Claimed The Life Of A US Teen

A 13-year-old boy from Ohio, US tragically died after overdosing on over-the-counter medication while attempting a viral TikTok trend, New York Post reported. The teenager died after ingesting 12 to 14 pills of Benadryl, an antihistamine as part of the 'Benadryl Challenge' on the social media platform TikTok. What is the 'Benadryl Challenge'? 'Benadryl Challenge', encourages its users to take dangerous amounts of the over-the-counter-drug diphenhydramine, commonly found in products like Benadryl and other OTC medications. The challenge, which particularly targets teenagers, urges them to take 12-14 pills at a time to induce hallucinations. Participants then record the whole ordeal on TikTok to share their hallucinating experience online.  The stunt became popular around 2020 when teenagers uploaded their attempts on TikTok, a report by the  New York Post  said.  Notably, Benadryl contains diphenhydramine, an antihistamine that temporarily relieves symptoms
Post a Comment
Read more

"Major Crisis" In Tech Industry: Israel PM On Silicon Valley Bank Collapse

Israeli Prime Minister Benjamin Netanyahu warned on Saturday that the implosion of Silicon Valley Bank (SVB), the second largest bank failure in US history, created a deep crisis in the technology industry. "I am closely monitoring the collapse of the American investment bank, Silicon Valley Bank, which has led to a major crisis in the high-tech world," tweeted the Prime Minister of Israel. Netanyahu said that he's been in touch with senior Israeli tech figures following the collapse of Silicon Valley Bank in the United States. "If necessary, out of responsibility to Israeli high-tech companies and employees, we will take steps to assist the Israeli companies, whose center of activity is in Israel, to weather the cash-flow crisis that has been created for them due to the turmoil," he tweeted. Meanwhile, Netanyahu said that the Israeli economy is strong and stable, adding "which finds expression in this crisis as well." Netanyahu, who is in Rome fo
Post a Comment
Read more