U.S.-China trade war (Image courtesy of Yonhap)
SEOUL, Jan. 22 (Korea Bizwire) — A surge in Chinese exports is stoking tensions across the global industrial landscape, as countries worldwide grapple with an influx of low-priced Chinese goods that many say is disrupting their domestic markets.
China’s customs authority reported that exports reached a record 25.5 trillion yuan in 2024, jumping more than 7% from the previous year. The trade surplus exceeded 7 trillion yuan, a historic high that helped China achieve its 5% GDP growth target despite ongoing domestic economic challenges.
The flood of Chinese products has triggered a sharp rise in trade investigations globally. According to China’s Trade Remedy Information network (CTRI), the number of trade remedy investigations targeting Chinese imports more than doubled to 199 in 2024 from 87 in 2023. These included 156 anti-dumping cases, 26 countervailing duty investigations, and 17 safeguard measures.
“Many of these trade investigations are preemptive measures taken by developing countries,” said Yan Liang, an economist at Willamette University in Oregon. “They’re trying to prevent a surge in Chinese imports as China seeks new markets beyond the United States.”
The investigations span an increasingly diverse group of nations, with India leading at 37 cases, followed by the United States with 31, the European Union with 21, and Brazil with 19. The number of countries initiating such investigations expanded from 18 in 2023 to 28 in 2024, notably including emerging economies like Thailand, Peru, and Pakistan.
Industry analysts point to significant Chinese overcapacity in several sectors, including steel, batteries, electric vehicles, solar panels, and chemical products. China’s steel production capacity, while declining since its 2014 peak, has maintained high utilization rates, pushing the country’s global market share from 15% in 2000 to 57% in 2020.
The electric vehicle sector presents a stark example of overcapacity, with 9.54 million units produced in 2023 but only 8.41 million sold. In the solar panel industry, which China has designated as one of its “three new core industries,” prices for solar wafers and modules plunged by 75% and 50% respectively in 2023.
Critics attribute this surge in exports to substantial government subsidies. From 2009 to 2022, China provided approximately 173 billion dollars in subsidies to its new energy vehicle industry alone. The Korea International Trade Association notes that these subsidies explicitly exclude foreign companies, raising concerns about market distortion.
With Donald Trump’s return to office fueling speculation about a second round of trade wars, China has been actively pursuing stronger economic ties with Global South nations. Chinese President Xi Jinping emphasized this pivot in his 2025 New Year’s address, highlighting China’s leadership role in South-South cooperation.
The share of Chinese exports to the United States already declined from 19% in 2019 to 13% in 2024, according to the South China Morning Post. This shift suggests that Trump-style tariff threats might prove less effective than during his previous administration, potentially pushing China to strengthen trade agreements and local investments in other regions as it navigates an increasingly complex global trade landscape.
Ashley Song (ashley@koreabizwire.com)
