MNI BRIEF: Trump Tariffs To Push China, EU Cooperation - BOC
MNI (BEIJING ) - President-elect Donald Trump's anti-globalisation policies will create more opportunities for cooperation between Beijing and Brussel's as both regions face pressure from U.S. protectionism and geopolitical challenges, according to a report released by the Bank of China's Research Institute.
China and Europe could see greater cooperation in green technologies, electric vehicles and digital innovation, particularly in manufacturing, technology, global climate governance, and strategic security, the report noted.
The U.S is expected to limit Beijing's export channels and hinder intermediate goods trade, as Washington expands restrictions on exports to investments, forcing a further adjustment of China's industrial supply chain layout.
If the U.S. revokes China’s most-favored-nation (MFN) status, it is estimated that within 12 months of the tariff hike, China's exports to the U.S. could decline by 5.5% compared to 2023 levels, the BOC said. China's exports to the U.S. could drop by 10-15% within 12 months,dragging down China's overall exports by 1-1.5 percentage points, should the U.S. raise import tariffs on Chinese goods to 60%, the report added. (See MNI: China Domestic Stimulus Needed To Counter Trump-Advisors)