- China’s trade with the U.S. has plummeted by 14% in the first half of this year compared to the same period last year, a decline that China attributes to U.S. export tariffs.
- The trade drop comes on the heels of the BRICS alliance’s historic expansion, which saw six new countries join the bloc, a development that China has vocally supported.
A Tectonic Shift in Global Trade Dynamics: The BRICS Factor
In a seismic shift underpinned by geopolitical maneuvers, China’s trade with the United States has contracted by 14% in the first half of this year as compared to the same timeframe a year ago. While some might consider economic fluctuations as normal, the timing of this downturn is far from coincidental. It coincides with the BRICS alliance adding six new member nations, a move that China has fervently championed. According to China, the trade constriction has its roots in export tariffs levied by the U.S., casting the onus squarely on Western policy.
The BRICS expansion, featuring economic and geopolitical agendas, had long been seen as a watershed moment in the collective’s history. Now, barely a week after the summit, the global implications are materializing. Given China’s endorsement of this enlarged BRICS configuration, the country is predicted to recalibrate its trading focus from the West to a bloc-centric approach that accentuates its local currency initiatives.
Export Tariffs: The Crux of the Trade Decline
China’s ambassador to the U.S., Xie Feng, identified U.S. export controls as the pivotal element in the trade downturn. Specifically, Feng cited the
“Section 301 tariffs on Chinese imports, unilateral sanctions, and tightened export controls”
as the primary levers influencing the decline. This is not just a diplomatic quibble; the impact is broader and has economic reverberations.
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“Many families’ livelihoods have been affected, and businesses in both countries have borne the brunt,”
said Feng.
This shift in trade dynamics is particularly noteworthy, considering that the United States has been China’s largest single-country trading partner. However, this pivot could feasibly funnel into a burgeoning trade relationship between China and its newly expanded BRICS counterparts. With six additional countries now under the BRICS umbrella, the bloc’s economic potency is substantially augmented, offering China a ripe platform for diversifying trade relations.
The key takeaway here is that the recalibration of China’s trading partnerships is not a random act but a carefully calculated move. With the enlargement of the BRICS alliance and the imposition of U.S. tariffs, China’s shifting focus towards intra-bloc commerce is emblematic of a new chapter in global trade dynamics.
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