The News
US President Donald Trump’s unpredictable tariff war and Chinese leader Xi Jinping’s strategy of manufacturing overproduction threaten global commerce, analysts argued.
More than 23% of Chinese manufacturers made a loss in the last quarter of 2024, and economists warned Trump’s blanket 10% tariffs on Chinese exports can push them to the brink, Nikkei Asia reported, worsening the country’s overcapacity dilemma.
But China’s global manufacturing dominance — its exports over the past six years grew more than 10 times as fast as its imports — are hurting Beijing’s trade partners and competitors, economist Brad Setser argued.
Between Xi’s “one-way vision of trade” and Trump’s willingness to weaponize tariffs, “the global economy is in for a rough ride.”