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china us trade

-title China Shifts Lending Focus to Advanced Economies

by Priya Shah – Business Editor November 18, 2025

written by Priya Shah – Business Editor

Here’s a summary⁢ of the key takeaways from the article:

*‌ Shift in Lending Focus: China has‍ dramatically shifted its overseas lending from developing countries to advanced economies.‌ In 2000, 88% of loans went ⁣to low/lower-middle income countries; by ‍2023, that figure dropped to 12%.
* US as Top ⁣Recipient: The United States is now the largest recipient of Chinese loans, receiving over $200 billion for nearly 2,500 projects.
* Strategic⁢ Sectors: The lending is concentrated in sectors critical for economic‍ competitiveness adn technological advancement: energy infrastructure, transport, high-tech (especially semiconductors), and critical minerals. Chinese funding supports projects⁣ like LNG facilities, data centers, airport expansions, and pipelines.
* ⁢ Investment in Major US Companies: Chinese state-owned⁢ entities⁣ are providing credit to major US corporations like Amazon, AT&T, Verizon, Tesla, GM, Ford,⁣ Boeing, and Disney.
* Decline of Belt and ‍road initiative: The Belt and Road Initiative, previously focused on the Global South, has seen reduced activity as China limits risk in countries wiht debt issues.
* Increased Lending ‌to Europe: The UK and EU have also received meaningful funding ⁣($60 billion and $161 billion respectively).
* ⁢ China as largest Creditor: The study confirms China is the world’s largest official creditor, with a total overseas portfolio two to four times larger than previously estimated ($2.2‍ trillion between⁣ 2000-2023).
* New Phase of Strategy: This shift suggests china’s global strategy is entering a⁢ new phase, focused on securing supply chains and gaining influence ⁤in key industries within advanced economies.

In essence, China is no longer primarily a lender to developing nations; it’s becoming⁢ a significant financial player within the economies of developed countries, notably the US.

November 18, 2025 0 comments

World

America’s Mercantilist Misstep: China’s Rise Undermines US Strategy

by Priya Shah – Business Editor September 26, 2025

written by Priya Shah – Business Editor

the Shifting Landscape ⁢of ⁣Global Trade⁣ and China‘s Ascendance

Recent‍ shifts in ‍global trade dynamics are increasingly driven by China’s economic policies,rather than those of the United States,despite the continuation of Trump-era‌ tariffs under the Biden management.While⁣ the initial Trump administration tariffs‍ prompted China to reroute exports through third countries like Vietnam and Mexico, this strategy is proving less effective against the current wave of trade tensions.

According to Neil Shearing,chief economist of ‌Capital Economics in London,the share of China’s exports ‌going directly to the US has fallen by approximately 4 percentage points this year. However,⁢ indirect shipments to the US have only increased by 0.5 percentage points, meaning only about one-eighth of the decline ⁢in direct exports has ⁢been offset by rerouting. This contrasts sharply ‍with 2018, when ‌a third ⁢of the decline in direct‌ Chinese exports was ‍compensated‌ for by ⁤indirect routes.‍ Countries utilized for⁣ rerouting, like Mexico, face limited benefit and risk potential backlash from the US.

Rather of rerouting, China has adopted a strategy⁤ of lowering export prices. From⁤ October 2022, following the lifting of its stringent Covid-Zero restrictions, Chinese export prices dropped by 22%, while prices elsewhere remained relatively stable.This approach, described as “dumping,” reflects a broader strategy of establishing dominance in emerging technologies.

This new form of mercantilism differs significantly from the traditional approach‌ favored by the US.⁢ while the US aims to restore past ⁢manufacturing strength by erecting trade barriers against commodity exports,⁢ China is focused on⁣ securing leadership in ⁣future-oriented industries. Data from the International Energy Agency indicates that China currently produces over 70% of the world’s electric vehicles, 92% of global solar cells, 98% of‍ solar wafers, and 85% of solar panels. Moreover, Chinese companies manufacture more ⁢than three-quarters of all batteries⁢ sold globally, with prices dropping nearly 30%.

This dominance is fueled by intense competition within‌ China,driving down prices and impacting corporate profits.The Chinese goverment has even launched an “anti-involution” campaign in response to this‍ over-competition. The ⁣resulting surplus of inexpensive products is likely to be exported, potentially solidifying China’s global leadership ‌in⁣ these sectors.

The US approach to green⁣ energy, ‌viewing it as a potential “scam,” could prove⁤ detrimental if carbon fuels become obsolete. Regardless, China’s lower electricity production costs ‍- currently less than half that of ‍the US – provide a significant advantage.

Ultimately, mercantilism is becoming a defining⁤ feature of the global economic⁤ order. However, Chris Watling, chief executive of Longview Economics in London, suggests that China, with its experienced mercantilist practices, is better positioned to capitalize on this trend than the United States.

September 26, 2025 0 comments

World

Trade War: China’s Export Surge and Economic Strategy

by Priya Shah – Business Editor September 16, 2025

written by Priya Shah – Business Editor

Summary of the Article: China‘s Economic Strategy Amidst Trade Tensions with the US

This New York ⁤Times article details China’s economic strategy in the face of escalating trade tensions with‌ the United States under the ⁣Trump administration.Here’s a breakdown of the key points:

1. Shifting Trade Focus:

* Export ⁢Surge: China is aggressively increasing exports to countries other than the US to offset the impact of US tariffs. This strategy has⁢ been years in the making, fueled by infrastructure investments in the developing world.
* Tariff Impact: Despite avoiding the highest threatened tariffs, Chinese goods still face critically important⁣ duties (minimum 30% plus others) in the US.
* Economic Growth: Increased exports and investment‌ in manufacturing are helping to maintain China’s economic ‍growth.

2. Domestic Economic‍ Weakness:

* Masking Problems: The export surge is concealing underlying weaknesses within the Chinese economy.
* Key Issues: These include a real estate downturn,decreased consumer ‍spending,high youth unemployment,and deflationary pressures due to overproduction.
* Stimulus Efforts: Government attempts to stimulate the economy (low interest rates, easing homebuying rules, subsidies) have had limited success so far.
* Controlled Narrative: China’s strict control over ⁣media and the ‍internet prevents widespread discussion of the negative impacts of the trade war.

3. China’s Leverage in Negotiations:

* US Market ⁤Importance: China recognizes the importance of the US market and the ⁤potential loss of customers due to tariffs.
* rare Earth ⁤Metals: China ⁤wields significant leverage through its dominance in the production and⁢ refining of rare earth metals and magnets – crucial components for many industries (cars, drones, robotics, missiles).They ⁢briefly suspended exports as retaliation,demonstrating their power.
* soybean Boycott: ‌ China is also using its position as‍ the world’s ‌largest soybean buyer (60% of global purchases) to pressure the US by halting purchases,impacting American ‍farmers.
* Clear message: ‍ China is signaling it is indeed willing to use its economic power to retaliate against US trade policies.

In essence, the article portrays China as proactively adapting to the trade war by diversifying its markets, leveraging its control over critical resources, and strategically applying economic‍ pressure on the US, all while attempting to manage internal ‌economic challenges.

September 16, 2025 0 comments