US-China Trade War: Middle East Faces Influx of Cheap Chinese Goods; Malaysia Implements Digital Tax

A Bloomberg analysis indicates that the escalating trade war between the US and China could lead to a surge of inexpensive Chinese goods in Middle Eastern markets. This situation arises from US tariffs on Chinese products, prompting Chinese manufacturers to seek alternative markets. Countries like Turkey and Saudi Arabia, aiming to develop their manufacturing sectors, may face challenges similar to those the US experienced due to China's subsidized manufacturing. From 2017 to 2023, Chinese exports to Turkey increased from $23.8 billion to $45.1 billion. Saudi Arabia also saw a significant rise in Chinese imports during the same period. In response to the influx of cheaper goods, some countries are implementing protectionist measures. Malaysia introduced a 10% sales tax on online purchases of low-value goods in 2024. Vietnam has banned Temu, a Chinese e-commerce platform. India has initiated investigations into China's dumping of solar cells, aluminum foil, and mobile phone components.