Germany has emerged the unlikely victor as the China-trade dispute has affected exports from both countries. The US has lagged behind in car exports, paving way for Germany to be the top car exporter to China, China's Vice Commerce Minister Wang Shouwen revealed.
Minister Wang commented on the situation, saying that there has been a change in trends. Germany isn't the only car exporter to take advantage of the US' decline. Sputnik News highlighted the rise of Japan as car exporter too, while the Chinese demand for US cars has started to wane because of the tariff situation.
Minister Wang, however, said that the trade dispute was silly and no one would benefit from it. The deficit in trade, he said, wasn't only happening in China; the US has created such a deficit in other markets as well, as disputes with the European Union and other territories are still ongoing. The only solution to this, the Vice Commerce Minister said, was to end the trade war and enter negotiations.
As far as Germany has managed to step into the void created by the US, China is doing the same in territories that the US currently has a dispute with. This is especially true in the European market, where the US is currently imposing tariffs on steel. China has emerged as a serious automaker as well, filling in exports wherever needed, and the products have been top-class for years.
China has companies like Geely, Beijing Automotive Industry Group, and BYD Company leads the charge. Forbes pointed out that they became leaders through a combination of risk, timely insertions of products, and the "ability to sell under their own brand," aside from entering joint ventures with companies to manufacture cars parts in a third-party capacity.
The China-US trade war is currently escalating as the US continued with its tariff plans. The Trump administration justified this to the American public by saying it was necessary to fix the current $500 billion trade deficit the US has with China. However, both sides have imposed tariffs on each other, with the US imposing three rounds of tariffs on Chinese exports in contrast to China's single tariff on US exports.
China has been looking for different trading partners outside of the US. Aside from its Asian neighbors in Japan and South Korean, European Union countries like Germany and Russia have emerged to fill the void.
