US-China trade war: How Trump’s tariffs destroying the Chinese economy

US-China trade war impacts China’s economy as Trump’s tariffs hit manufacturing, copper shortages loom, and Beijing secretly plans tariff exemptions to ease pressure. Read more on Dynamite News

Beijing: The impact of the heavy tariffs imposed by former US President Donald Trump is now clearly visible on China's economy. Although the Chinese government is trying to ignore it, the reality is that China has come under pressure from this trade war.

This crisis has come at a time when China was already struggling with the post-Corona pandemic economic slowdown, lack of domestic demand and real estate sector crisis, reports Dynamite News correspondent.

The Purchasing Managers' Index (PMI), an indicator of the health of China's manufacturing sector, fell to 49 in April, indicating a decrease in production.

This figure was 50.5 in March. A score below 50 indicates industrial contraction. It is clear from this that US tariffs are causing serious damage to Chinese manufacturing. Exports have slowed down, unemployment is rising and there is disruption in the logistics sector.

China's copper reserves are rapidly depleting and could be completely exhausted by June if the situation continues. The growing demand for copper by the US and the fear of possible tariffs have affected the global supply chain.

Major trading companies such as Mercuria have described it as the "biggest supply crisis in history". The situation is so serious that China has been forced to seek exemption from tariffs on US copper.

Although the Chinese government is not ready to bow down publicly, it is preparing a 'whitelist' behind the scenes. According to a Reuters report, this list includes those US products that will be exempted from tariffs.

It includes important products such as medicines, semiconductor chips and aircraft engines. Companies are being privately informed that their products may be exempted, provided they follow the official process.

The Chinese government is claiming to support companies and the unemployed through easy loans, aid policies and regional aid. But the reality is that large manufacturers are being hit the hardest, as exports have been affected by heavy tariffs.

Small industries, which are labor-intensive, are still somewhat safe.

Economic analysts estimate that China's economic growth rate may be as low as 3.5% this year, which is much lower than in previous years. The manufacturing sector is weak, the service sector is also in decline and market confidence is continuously declining.

The US-China trade war is putting pressure on China's economy. Tariffs, supply chain disruptions and domestic economic challenges are forcing China to make difficult decisions. While the government is trying to handle the situation, economic experts believe that China may face more difficult days ahead.