Trade Turmoil: China's Strategic Pivot Amid Rising US Tariffs

Amid escalating US tariffs, Chinese businesses are grappling with significant export challenges. With new tariffs impacting Vietnam and other Southeast Asian markets, China's economic growth faces a severe blow, highlighting its dependency on trade surpluses. Analysts call for urgent government stimulus to offset economic pressures and foster domestic consumption growth.

Chinese businesses are facing unprecedented challenges as the United States imposes new tariffs, placing significant pressure on China's export-dependent economy.

Jin Chaofeng, a Chinese outdoor furniture maker, moved his production to Vietnam seeking tariff relief, only to face new levies there and globally. Now, China grapples with finding new markets as the sweeping tariffs threaten both its economic growth and attempts to fight deflation.

Analysts predict these tariffs could slash Chinese exports by 30% and economic growth by 1.3%. As factories shut down and costs are cut, China's government is urged to stimulate the economy with measures such as tax rebates and liquidity injections to encourage domestic sales amid reduced global trade.

(With inputs from agencies.)