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For Europe, 30% US tariff would hammer trade, force export model rethink (www.reuters.com)
submitted 1 week ago by schizoidman@lemmy.zip to c/europe@feddit.org
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[-] randomname@scribe.disroot.org 6 points 1 week ago

This is what tariffs always do, but China would undoubtedly hurt most if this tariff conundrum continues. Just look at the trade stats.

[-] schizoidman@lemmy.zip 8 points 1 week ago* (last edited 1 week ago)
[-] randomname@scribe.disroot.org 5 points 1 week ago

I wouldn't expect the EU and other countries and blocks to absorb China's overcapacities for too long in case the US business breaks down for Chinese companies. The rest will (and must) react accordingly to protect their industries. That aside, the US market is too large and too important for China. You can't simply pivot all products to other markets.

[-] CosmoNova@lemmy.world 2 points 1 week ago

China‘s growth almost always beats expectations (that they themselves set) but you have to take them for their word for a lot of these numbers. For all we know the Chinese economy could be an even bigger blowfish than the Japanese economy in the late 20th century.

[-] Hotznplotzn@lemmy.sdf.org 2 points 1 week ago

Even if we assume that the 5.2% growth of GDP in the second quarter is true, it is based on exports. China's economy depends heavily on foreign markets as domestic consumption and investments are low, and the country won't be able to afford a larger government spending given their 3x GDP debt.

In a Reuters analysis, the agency titles that beneath China's resilient economy, [there is] a life of pay cuts and side hustles

While China has supported economic growth by keeping its ports and factories humming, the lack of real demand has hit profits, in turn squeezing workers [...] through wage cuts and forcing them to moonlight [...] Contract and bill payment delays are rising, including among export champions like the autos and electronics industries and at utilities, whose owners, indebted local governments, have to run a tight shop while shoring up tariff-hit factories [...]

Economists have long urged Beijing to redirect support to domestically focused sectors, such as education and healthcare, or boost household consumption - for instance, by bolstering welfare [...]

There is no data on payment delays in the government sector. But among industrial firms, arrears have grown quickly in sectors with a strong state presence, either through industrial policy or - like in utilities - through direct ownership.

Arrears in the computer, communication and electronic equipment sector and in autos manufacturing - two priorities for China's economic planners - rose by 16.6% and 11.2%, respectively, in the year through May, faster than the 9% average across industries. Overdue payments were up 17.1% and 11.1% in the water and gas sectors [...]

this post was submitted on 15 Jul 2025
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