China's economy demonstrated resilience, expanding at 5.4% in the first quarter of 2024, thanks notably to strong exports. However, rising tariffs from the U.S., potentially reaching 145%, threaten this growth trajectory. In response, China is pursuing free trade partnerships with other Asian nations, as highlighted by President Xi Jinping's diplomatic visits to Vietnam, Malaysia, and Cambodia. Chinese exporters are increasingly focusing on diversifying markets beyond the U.S. amid declining export figures. Experts suggest that while tariffs may pressure the economy short-term, long-term growth remains intact.
With the trade war clouding the outlook, analysts are forecasting that the world's second largest economy will slow significantly in coming months, however, as tariffs as high as 145% on U.S. imports from China take effect.
We need to diversify our market. When the West is dark, the East is bright. The global market is huge," said Wallace Huang, the export business director of Guangdong Weking Group, which makes rice cookers.
Beijing has hit back at the U.S. with 125% tariffs on American exports, while also stressing its determination to keep its own markets open to trade and investment.
Chinese leader Xi Jinping is visiting several other Asian countries this week as he makes a case for free trade, presenting China as a source of "stability and certainty" in uncertain times.
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