As Trump says he will hit China, Canada and Mexico with new tariffs, it is clear it will lead to an unholy economic and political mess. Is it also not time we acknowledge China has become the free trader advocate of the world?
As in China, Tesla is free to manufacture and sell American cars while the USA tariff’s Chinese EVs at 100% to keep companies like BYD out.
It is suggested that new manufacturing nations tend to protect their new factory owners with high tariffs (import tax). While efficient manufacturing nations are for free trade to boost their exports, helping consumers with no tariffs. And finally high-priced manufacturing nations are pressed to save ageing factories with new tariffs.
China is also the leading manufacturing country for a very large range of products and continues to seek markets abroad. They don’t like paying export taxes(tariffs) so they are pro free trade. So China as an efficient manufacturing nation is unsurprisingly for free trade.
On top of this in manufacturing goods, the Chinese are offering the Global South countries like those in Africa and Asia, free trade access to their markets. China will grant duty-free treatment to 100% of the tariff lines of products from the least developed countries (LDC) with diplomatic ties with China signed framework agreements on economic partnership for shared development with interested African countries. Thats not something you hear much often International Development circles but trade often beats aid for sure. Ask any Finance Minister in the Global South.
Free trade is usually one of the corners stone of liberal international order yet it appears to have been vanquished and now taken up by the Chinese.
I rest my case.