China now accounts for 40% of global container exports on a rolling three-month basis, a record high representing a 2.5% increase from nine months ago, according to Jens Eskelund, president of the European Union Chamber of Commerce in China, speaking to the Financial Times. Trump’s tariffs designed to punish Chinese firms appear to have backfired by pushing Chinese exporters to find markets elsewhere. The White House reported last month that the U.S. lost between $19 billion and $26 billion in tax revenue from transshipment practices, with China being the primary culprit. Economists predict a China Shock 2.0 that will extend beyond retail shelves to AI infrastructure and electric vehicles.
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