China’s economy is facing a challenge due to the increased US import tariffs on key Chinese goods

On May 14, the White House announced increased import tariffs on key Chinese goods, including electric cars and batteries, solar panels, steel and aluminum, critical minerals and semiconductors, medical products, and ship cranes. The tariff rates will range from 25% for solar panels and batteries to 100% for Chinese electric cars as early as 2024.

Although this measure is officially aimed at counteracting the losses incurred by the United States due to China’s unfair trade practices, its real purpose is to create conditions that undermine the competitiveness and innovation potential of Chinese goods.

China, whose goods will lose demand in the US premium market due to the rising cost of their imports, will be forced to reorient its supplies to the countries of the Global South.