With one hand, China is closing the door to U.S. products. With the other, it’s opening the door to U.S. competitors in the rest of the world. Chinese tariffs on U.S. products have increased to an average of 42%; everyone else pays an average of 19%. Lowering tariffs on everyone but the United States allows the Chinese economy to replace U.S. sources for some goods as the trade conflict slogs on.
But this isn’t solely about retaliating against the United States. China’s economy has been slowing for internal reasons, and improving access to foreign goods helps the Chinese economy cope with both the slowdown and the trade conflict.
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