Business leaders and economists are warning of a significant decline in Chinese exports due to the escalating tariff dispute with the United States.

The ongoing trade tensions have intensified with the imposition of a 20% tariff on Chinese products by the U.S., which includes a recent additional 10% tariff.

This has led to a challenging environment for Chinese exporters, who are facing increased competition from other countries and rising production costs.

As a result, many companies have shifted their manufacturing operations to countries like Vietnam, further weakening China's position as a global manufacturing hub.

China's export growth has already shown signs of slowing down, with a year-on-year increase of only 2.3% in January and February, falling short of the anticipated 5% growth rate. This slowdown is attributed to the prolonged impact of U.S. tariffs, which have disrupted trade flows and reduced demand for Chinese goods abroad.

The situation is compounded by China's economic challenges, including a high unemployment rate and internal competition among sectors.

Despite these challenges, analysts suggest that China is better positioned to withstand the tariffs compared to 2018, due to reduced interdependence with the U.S. and successful strategies to diversify its economy.

However, the ongoing trade conflict continues to pose significant risks to China's economic growth and stability.

ANI