China's factory exports are soaring at an unexpected rate, fueling concerns around the world about job losses and prompting a growing backlash against Beijing's trade practices.
From steel to solar panels, Chinese manufacturers are finding more overseas buyers for their goods. While this export boom is welcomed in China as it grapples with a severe downturn in its housing market, other countries increasingly view China's rise as coming partly at their expense.
The European Union announced last week plans to impose tariffs on all electric cars imported from China, citing "substantial evidence" that Chinese agencies have illegally subsidized these exports – an allegation Beijing denies. The EU is also considering import restrictions on Chinese wind turbines and solar panels.
India has imposed broad tariffs on steel from China, while Turkey has complained about its lopsided trade deficit with Beijing. The Biden administration, which has kept Trump-era tariffs in place, has expanded restrictions on American high-tech exports to China.
China already produces a third of the world's manufactured goods – more than the U.S., Germany, Japan and South Korea combined. Its soaring exports correspond to growing trade deficits in other nations that can drag on their economic growth.
Countries like Vietnam and Mexico have become conduits for Chinese components that bypass tariffs – a practice the U.S. and EU aim to crack down on through stricter rules on product origins.
Europe will also phase in a carbon border tax based on emissions from a product's manufacturing, which is expected to heavily impact imports tied to China's coal-heavy electricity grid.
Beijing has expressed concerns about the rise in protectionist trade measures targeting China. But foreign officials cite unfair advantages like low-interest loans, cheap factory land and underpriced energy that boost Chinese exports.
As China shifts industrial policy to boost manufacturing amid its housing slump, calls are growing – even domestically – for Beijing to instead prioritize bolstering consumer spending to rebalance its economy. But premier Li Qiang's recent pledges, like modest pension hikes, were small steps in that direction.