China-US Trade Tensions Surge Amid BRICS Expansion
In light of the recent expansion of the BRICS alliance, China has witnessed a substantial 14% decline in its trade with the United States over the past year, particularly in the first half of this year.
China has attributed this trade reduction to export tariffs imposed by the United States.
This decrease in trade activity coincides with the recent expansion of the BRICS alliance, which welcomed six new member countries last week. China had been a vocal proponent of this expansion and may now shift its focus away from Western trade towards transactions within the bloc that support its initiatives for the promotion of its local currency.
The 2023 BRICS annual summit had long been anticipated as a pivotal moment in the alliance’s history, with discussions about expansion and economic policies at the forefront. The geopolitical implications of this event are already becoming evident as we approach the summit.
China’s Ambassador to the United States, Xie Feng, pointed to export controls as the primary factor contributing to the decline in trade relations.
READ MORE: BRICS Explores New Export Currency in 2024
He emphasized the impact of US actions, such as imposing Section 301 tariffs on Chinese imports, implementing unilateral sanctions, and tightening export controls. Feng also noted the adverse effects on families and businesses in both countries.
It is worth noting that the United States remains China’s largest trading partner among individual countries. Nevertheless, this situation could lead to an increase in trade activity between China and its fellow BRICS member countries, especially given the recent expansion of the alliance.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
