Jason Douglas and Dave Sebastian of The Wall Street Journal report that emerging economies are joining U.S. and Europe in shielding domestic manufacturers from a rising tide of Chinese imports. They write:
To revive its economic fortunes, China is flooding the world with cheap goods, a multitrillion-dollar sequel to the China shock that hit global manufacturing more than two decades ago.
This time around, the world is fighting back.
The U.S. and European Union are threatening to raise trade barriers to Chinese-made electric vehicles and renewable-energy gear. Now, emerging economies including Brazil, India, Mexico and Indonesia are joining the backlash, zeroing in on Chinese imports of steel, ceramics and chemicals that they suspect are being dumped on their domestic markets at knockdown prices. […]
Temporary tariffs will be needed to avoid the closure of factories and mass job losses, said Fátima Coviello Ferreira, Abiquim’s economics director. “The sector just can’t compete with such aggressive importation,” she said.
Read more here.
