Trade war with the US obliges China to seek new markets

The commercial war between the United States and China will force the Asian country industry to find new markets to drain production. Companies also evaluate using alternative routes to escape American tariffs.

The American tariff against China and Beijing’s response to barriers prevent in practice the trade between the two largest economies in the world.

Now Chinese companies need to find a destination for the $ 438 billion in products that were destined to the US market last year alone.

Most are manufactured objects and Chinese domestic consumption is not able to absorb production. Beijing diplomacy has been trying to make room in the European market, which brings together 449 million consumers.

Last Tuesday (8), Chinese prime mini, Li Qiang, called the president of the European Commission, Ursula Von Der Leyen and said that China is ready to work together in promoting solid and stable development of the relationship with the European bloc.

Chinese is expected to be required to overthrow the price of products to access new markets. Which would impact national productive chains.

In Brazil, one of the most vulnerable activities to the trade war between the United States and China is Steel. Brazilian steelmakers are less competitive than Chinese and there is also the risk of Beijing now further expands subsidies to the sector, which already has the massive support of the Chinese state.

Despite the risk, the actions of the three largest Brazilian steelmakers recorded strong discharge on Wednesday (9).

It has also expressed concern leaders of the footwear and textile industries, which warned the risk of a new wave of predatory business practices.

This content was originally published in business war with the US forces China to seek new markets on the CNN Brazil website.

Source: CNN Brasil

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