US ban of trade loophole set to downsize China’s growth


Last year, companies such as Shein and Temu shipped US$46bil worth of small parcels to the United States to take advantage of the loophole. — Reuters

WASHINGTON: The decision by president Donald Trump to ban Chinese companies from using a US tariff loophole will hit tens of billions of dollars of trade and reduce China’s economic growth this year, according to new estimates by economists at Nomura Holdings Inc.

Last year, companies such as Shein and Temu shipped US$46bil worth of small parcels to the United States to take advantage of the loophole, according to Nomura’s estimates.

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