Beijing is now facing criticism about its trade policies in the Global South that resembles those coming from Brussels and Washington.
Commentary
China’s communist regime appears to be creating adversaries worldwide. Beijing’s aggressive trade strategies have eroded its supposed goodwill in the United States, Europe, and Japan, leading to trade barriers against Chinese goods. The incoming Trump administration is expected to impose additional barriers.
Now, China is encountering similar pushback and complaints from developing nations in Asia and Latin America, known as the Global South. Alongside President-elect Donald Trump’s tariff plans, this new development poses a challenge for China economically and indicates even more obstacles as Beijing tries to revive the nation’s economy.
The emerging challenges with the Global South are a result of a series of policy missteps in Beijing, both domestically and internationally. These issues began with the COVID-19 pandemic and the subsequent property crisis. The pandemic setback the economy, but the real damage came from China’s zero-COVID policy, which prolonged lockdowns and quarantines in China while the rest of the world reopened.
This extended period of restrictions severely impacted the financial security of Chinese workers and private businesses, leading to a reluctance to spend. Additionally, Beijing’s inaction in response to the property developer failures worsened the economic situation. These failures negatively affected Chinese finance and economics, escalating into a severe crisis that hindered consumer and investment spending.
Unable to stimulate the economy by reviving consumer and private business investment, Beijing made another error by investing heavily in state-owned manufacturing operations. However, due to reduced domestic spending, China had to rely on exports, which failed due to another policy misstep.
Because Beijing failed to address complaints from major developed economies regarding its trade practices, the United States, Europe, and Japan imposed limitations on China trade. This forced Beijing to seek markets in the Global South to absorb its surplus production. However, these nations are now pushing back, mirroring the complaints from developed nations.
Complaints about Chinese products have become widespread in the developing world. Data from the International Monetary Fund shows a significant surge in Chinese sales to these economies compared to their sales to China. China’s trade surplus with the developing world has increased substantially.
In countries like Thailand, Indonesia, and India, Chinese imports have caused job losses and business closures. These nations have implemented tariffs and trade-defense measures against Chinese products, prompting Beijing to face diplomatic challenges as it portrays itself as a leader of the Global South.
With mounting hostility towards China’s trade practices and a stagnant domestic situation, Beijing is left with limited options.
There is little hope for a rapid turnaround in China’s economic outlook.
Opinions expressed in this piece are solely those of the author and may not align with the perspective of The Epoch Times.
