XI to visit Southeast Asia in the middle of the China export crisis

China has promised to “search for differences in land and implementation” with Asian neighbors after the United States imposed a 145% rate on all Chinese products on April 9. Chinese President Xi Jinping will pay the state visits To three countries in Southeast Asia, Vietnam, Malaysia and Cambodia from April 14 to 18, according to the Chinese Foreign Ministry.

This manifestation of interest is not surprising in the context of the trade war significantly increased with the United States. Many Chinese exporters describe enormous losses on social networks which, they believe, have undergone American prices.

The morning post in southern China reported On April 9, to avoid prices, some Chinese exporters abandoned their goods in the midst of the United States by rendering the containers to maritime companies. If they had not done so, they should have paid a rate of 145% to American customs, which means that their income would not be enough to cover the price. Even after throwing their goods, they still had to pay their suppliers.

To one of the elements of Plan B of Beijing: Xinhua Friday April 11 published three distinct stories to highlight the long-term friendships of China with the countries of Southeast Asia:

(This last article does not note that in 1970, encouraged by China, Sihanouk approved the Red Khmer supported by Mao Zedong who then committed the Cambodian genocide of 1975-1979.)

To ignore pricing escalations

Friday, China announcement that it would increase prices on American products 125% compared to its previous rate of 84%, corresponding to the level announced by the Trump administration on Thursday. However, the White House clarified that the price imposed on Chinese products is now 145% if the 20% previous samples have requested fentanyl trafficking are included.

As American products exported to China already have no viability of the market at current rights, Beijing “will simply ignore” any other tariff climbing in the United States in the future if Washington “persists with its price games,” said the Chinese Council of Customs Tariff Commission.

“Even if the United States also increases prices at even higher levels, it would be economically devoid of meaning and would ultimately become a laughing in the history of the world economy,” he added.

According to the general customs administration by China, China imported $ 162 billion in American products last year, which represented around 6% of the country's total imports of 2.7 billions of dollars. These products include 875,700 tonnes of cotton, 21 million tonnes of soybeans, 2.07 million tonnes of corn and 9.64 million tonnes of crude oil. China has also imported planes and semiconductors from the United States.

Some observers have declared that China can get the basic products of Brazil, Argentina and India; Semiconductors of Taiwan, Japan and South Korea; and Malaysia and Singapore planes. These countries can focus more on Chinese customers while American exporters have others.

The main problem is how Chinese manufacturers can quickly erase their inventory and adapt to the new environment.

Willy Lin, president of Hong Kong Shippers' Council, warned That exporters who throw sends halfway will face legal disputes and complaints of potential client damage.

Caixin reported On April 10, many Chinese exporters delayed or canceled their shipments to the United States. In the Ports Yangshan and Waigaoqiao de Shanghai, the unleashed containers accumulate, waiting for exporters to recover their goods or change their destinations.

A Chinese exporter told SCMP that due to the imposition of American prices, his expeditions to the United States went from 40 to 50 containers per day to 3-6 containers.

Exporters' losses

On social networks, a manufacturer of socks in Zhejiang said The gross profit of his business increased from around 400,000 yuan in 2023 to 100,000 yuan last year. She said that a client had ordered a million yuan ($ 137,311) of socks last year but did not collect them. She said that she had no customers this year and cannot pay 60,000 yuan in rent.

A fabric manufacturer said The fabric market remained underprocusing several weeks ago, but now its business cannot sell half of its products. A hat manufacturer in Yiwu said he could still send his products to the United States if the price was 20 to 30%, but he has no more price advantage because the price is more than 100%.

A Youtuber based in Shanghai said Exporters delayed their shipments to the United States because they did not know if the American prices would continue to increase during the trip of their products, which generally takes about two months. He said that if American prices become stable later, Chinese exporters and American buyers can compromise on pricing payment and resume shipping.

Meanwhile, many American buyers, including Amazon, would have ceased to order products in China or canceled Their orders after Trump imposed a tariff of 104% on Chinese products on April 9.

A Central China Securities research report said American “reciprocal prices” will harm China’s economic growth in the short term, but China still has an advantage in producing long -term electronic and textile products. He said China would probably reveal stimuli to stimulate domestic consumption and absorb unsold products.

Long live the Sino-Sino friendship!

Back to the trip of Xi and all this friendship: in recent years, the tensions between China and the countries of Southeast Asia, notably Vietnam, Malaysia and the Philippines, have strengthened the dispute from the Southern China Sea.

In addition, the dam in the Mekong River (Lancang) upstream in China for hydroelectricity affected downstream from Thailand, Laos, Cambodia and Vietnam.

From April 8 to 9 of this year, XI delivered a important speech During a central conference in Beijing on work related to neighboring countries.

XI, who is also secretary general of the Central Committee of the Chinese Communist Party (CPC) and president of the Central Military Commission, called for the construction of a community with a common future with neighboring countries and to strive to open a new land for Chinese neighborhood work.

“China will respect the Asian values ​​of peace, cooperation, openness and inclusiveness, will use high-quality belt and road cooperation as a main platform and will continue the Asian security model which presents the sharing of Weal and misfortune, in search of common ground during the shelving differences and to prioritize dialogue and consultation,” said XI.

“China's relationships with its neighbors have been their best since modern times,” he added. “The collective boom in the world South has become an essential force to promote multipolar development.

“China will actively promote cooperation within the framework of executives of the Shanghai cooperation organization, cooperation in East Asia, APEC and the Conference on Interaction and Confidence in Asia (Cica). true multilateralism.

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