China’s government should back a shift of exports toward developing countries, so it can find markets with the capacity to digest its industrial output and ease tensions with other trade partners, said an adviser to the nation’s central bank.
“We have to pay attention to the way the international market responds” to China’s exports as its economic weight grows, said Huang Yiping, a member of the monetary policy committee of the People’s Bank of China.
“We must come up with ways to reduce the conflicts,” he said in a speech in Shanghai on Thursday.
With growing resistance from developed nations, “we should consider if we can shift our focus to developing countries in the future,” Huang said.
He went on to propose a so-called “Global South Green Development Plan, ” under which emerging economies could pursue a green transition with the help of financing from China’s commercial and policy institutions and “even direct government aid.”
Tensions between China and Western trade partners are growing after a surge in exports from the country’s renewable energy, battery and electric vehicle industries, which led to complaints about overcapacity.
The EU announced last week it plans to raise tariffs on China-made EVs as high as 48%.
Beijing has hit back by launching an anti-dumping probe on pork imports from the bloc and Chinese carmakers are calling for an additional tax on some vehicle shipments from the region.
The new trade barriers have pushed Chinese automakers to look more closely at other markets, with BYD and Great Wall Motor already dominating EV sales in countries like Brazil.
But some developing nations are also growing wary of the surge in exports from China, a potential obstacle for Huang’s proposal.
Turkey, for example, announced in March it would impose an additional 40% customs duty on Chinese electric vehicles.
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