A:BAWABA - Beijing's "weak" economy solution increases worries of a new global trade war, according to "The Wall Street Journal." The publication reported that China's approach is to boost manufacturing and pressure global firms.
In response to slowing development, Chinese leader Xi Jinping has prioritized manufacturing, most of which is exported, the paper states. As China exports more, "this time, there is nowhere for competitors to hide."
The paper added that the EU's tariffs on imported Chinese electric vehicles are the latest indicator of rising tensions.
The US imposed taxes on Chinese steel, aluminum, electric cars, solar cells, and other imports earlier this year. Turkey boosted duties on Chinese electric vehicles, while Pakistan raised stationery and rubber levies. Other nations have begun anti-dumping investigations to examine if Chinese commodities are underpriced. Japan is reviewing Chinese electrode imports, while India is monitoring dyes and chemicals.
The UK is examining excavators and biodiesel imports, while Argentina and Vietnam are scrutinizing Chinese microwave ovens and wind turbines.
Beijing made bold but hazardous calculations after these nations took action, according to the research. Investing more in manufacturing might boost China's economy and industrial strength without causing foreign reaction that could imperil its future.
Beijing policy advisors and those who spoke with Chinese authorities say China's leadership faced a crucial crossroads last year as the property crisis weakened the economy to its worst in decades.
Advisors say China's economy needs a fundamental rethinking, away from manufacturing and construction and toward domestic consumption, which would make it more like the US and put it on a more stable growth path.
The article said that China appeared to be abandoning its approach of reducing overproduction, which infuriated its trading partners.
According to Chinese policy experts, Xi's views have changed as US-China tensions have increased and China's economy has worsened. He appears to be more prepared for a fresh trade war, less sensitive to Western criticisms, and more focused on China's capacity to manufacture all it needs in a fight with the US.
