Trump's tariff sanctions worsen China's economic crisis

Due to Trump's tariff sanctions, China's existing production surplus problem has worsened. According to Japanese economic newspaper Nikkei Asia on February 18, the tariff measures imposed by U.S. President Donald Trump on China have exacerbated economic difficulties, particularly the problem of selling low-cost products for manufacturers.

More than 23% of newly registered companies in China reported losses through the third quarter of 2024, a higher rate compared to previous years. Additional tariff measures on Chinese exported goods worth $400 billion USD are expected to cause further financial difficulties for manufacturers, accelerate the relocation of manufacturing companies abroad, inflict more damage on the already weak market, and increase cash flow pressures.

The Chinese economy's dependence on exports and increasing trade barriers from other countries have complicated the existing trade recession. Major industries such as steel and solar energy products have been severely affected, with major companies reporting huge losses.

Despite the Chinese regime's attempts to control prices and promote stable competition, economists have emphasized that merely controlling company activity is not enough and that the problem of lack of demand in the economy must be addressed. The shift towards a manufacturing-focused policy has not helped increase job opportunities but rather led to a continuous increase in the number of companies suffering from trade stagnation."