China’s Actions Could Spark Worldwide Trade Conflict – Bloomberg : Analysis

China’s shift towards manufacturing could potentially trigger a new trade war with other global industrial powers, according to Bloomberg analysts. In response to economic troubles caused by the Covid-19 pandemic and the real estate crisis, Beijing has increased its investments in manufacturing. Lending to industrial enterprises has surged by 38.2% year-on-year, while outstanding loans to the property sector have declined. Investment in the manufacturing sector has also risen, with a particular focus on high-tech manufacturing. China has achieved a surplus of manufactured goods, with around 45% of its goods being exported due to weak domestic demand. However, this focus on manufacturing could lead to imbalances in global production and increased trade tensions with other countries. It could also result in reduced imports of hi-tech components from countries like Germany, South Korea, and Japan. US efforts to limit China’s access to advanced technology and the EU’s investigations into Chinese electric vehicles are indicators of this potential backlash.

Analysis:
The given article from Bloomberg suggests that China’s increased focus on manufacturing could potentially trigger a new trade war with other global industrial powers. It states that Beijing has ramped up investments in manufacturing in response to economic troubles caused by the Covid-19 pandemic and the real estate crisis. The article cites a surge in lending to industrial enterprises and a decline in loans to the property sector as evidence of this shift.

The article also highlights China’s increased investment in high-tech manufacturing and its achievement of a surplus of manufactured goods. It states that weak domestic demand has led to around 45% of China’s goods being exported. However, it warns that this focus on manufacturing could lead to imbalances in global production and increased trade tensions with other countries. It suggests that countries like Germany, South Korea, and Japan may see reduced imports of hi-tech components due to China’s manufacturing focus.

The article briefly mentions the US efforts to limit China’s access to advanced technology and the EU’s investigations into Chinese electric vehicles as indicators of a potential backlash against China’s manufacturing shift.

In terms of credibility, Bloomberg is generally considered a reputable source for financial news and analysis. However, it is worth noting that the analysis presented in this article is based on the opinion of Bloomberg analysts rather than concrete data or quotes from industry experts.

There is a potential bias in this article towards viewing China’s manufacturing shift as a negative development that could lead to trade tensions. While it does mention China’s economic troubles as a reason behind the manufacturing focus, it does not provide a balanced perspective on the potential benefits of this shift for China’s economy or the global economy.

In terms of potential misinformation or lack of nuance, the article does not provide detailed data or analysis on the impact of China’s manufacturing focus on global production or trade tensions. It is primarily speculative in nature, without providing concrete evidence or expert opinions to support its claims.

In terms of the political landscape and the prevalence of fake news, this article may contribute to the existing narrative of China as a threat to global trade and a potential source of trade tensions. Given the current geopolitical tensions between China and various industrial powers, such as the US, there is a risk that this article could be seen as reinforcing anti-China sentiments and biases. It is important for readers to approach such articles critically and seek a balanced perspective on the topic.

Source: RT news: China could trigger global trade war – Bloomberg

0

0