- Beijing has requested its US counterparts to ease the import tariffs and export controls in a bid to strengthen the trade between the two superpowers.
- China’s President Xi Jinping and Russia’s Vladimir Putin are expected to skip the G20 Summit in New Delhi next week as the BRICS movement continues to expand.
The relationship between the United States and the People’s Republic of China has increasingly soared in the past few years, as depicted by the trade interactions between the two nations. According to China’s ambassador to the United States, Xie Feng, the U.S. tariffs and export controls are to be blamed for the continued decline in trade between the two countries.
Moreover, Feng noted that the China-U.S. trade fell by about 14.5 percent during the first half of the year in 2023, compared to the same time last year. Feng highlighted;
This is a direct consequence of U.S. moves to levy Section 301 tariffs on Chinese imports, abuse unilateral sanctions and further tighten up export controls. Livelihoods of many families have been affected, and businesses from both countries have borne the brunt,
The revelation comes after China‘s officials continued to call for more cooperation between the United States and China to enhance trade between the two countries. For instance, Wang Wentao, China’s minister of commerce, called on the U.S. counterparts to work on their differences for the betterment of the global business community.
Moreover, the Chinese GDP is expected to slow down in 2023 from 10 percent in the past years to about 5.1 percent. Notably, China’s construction industry, which contributes over 20 percent to its GDP, has been on the receiving end since the Covid-19 lockdown. For instance, China’s Evergrande is struggling with a debt of over $328 billion and about 2,000 lawsuits from creditors.
Can China Look Elsewhere for Growth Assistance
In the past few years, China has accelerated its crude oil purchase and interactions with the BRICS movement. Earlier last month, Jinping went to South Africa for the BRICS summit, where six more members were disclosed. Interestingly, the BRICS new members are top oil producers led by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia, and Argentina.
As the trade relationship between the United States and China turns for the worse, China has increased its funding for local research in crucial industries like semiconductor chips to ensure future independence.
Already, China has imposed export restrictions on raw materials used in the manufacturing of semiconductor chips amid global artificial intelligence (AI) hype. On the other hand, the United States has sanctioned Chinese tech firms from accessing its semiconductor chip products, which has devastated the country’s economic growth.
Ripple’s Place in US-China Feud
Ripple Labs plays a crucial role in cross-border payments across different corridors through its XRP. With the United States dollar, which is the dominant global currency reserve, feeling the heat of de-dollarization, Ripple is expected to significantly benefit as enterprises adopt its technology to facilitate cross-border payments.
