Global Trade Friction Index Remains High in June, but Shows Signs of Improvement
BEIJING, Aug. 30 (Xinhua) — The Global TradeFriction Index, released by the China Council for the Promotion of International Trade (CCPIT) on Thursday, showed that the index remained at a high level in June, although it saw a slight improvement compared to the previous month.
The comprehensive index for June stood at 102, down 22 pointsyear-on-year and 4 points month-on-month. The total amount of trade friction measures implemented globally decreased by 68.8% year-on-year and 65.1% month-on-month, indicating a slight improvement in the overall trade friction landscape despite continued frequent occurrences.
Although the global trade friction index remains at a high level, the declining trend in recent months suggests a potential easing of tensions, said Wang Linjie, spokesperson for CCPIT, at a press conference. However, businesses should remain vigilant and closely monitor trade policy developments in key countries and regions.
India, Brazil, and the UK Top the List
The country-specific index, which monitors 20 countries and regions, revealed that India, Brazil, and the UK had the highest trade friction indices. The European Union recorded the largest amount of trade friction measures implemented.
These findings highlight the importance for businesses to stay informed about the specific trade policies and regulations in these countries and regions, Wang said.
Manufacturing Sector Remains a Hotspot
The industry-specific index, which covers 13 major industries, showed that trade friction measures were concentrated in the machinery equipment, chemical, and light industry sectors. The machinery equipment sector topped the index, indicating that trade friction is particularly prevalent in the manufacturing sector.
Businesses operating in the manufacturing sector, particularly those looking toexpand overseas, should be aware of the potential for multiple compliance risks, Wang advised.
Factors Contributing to Trade Friction
The CCPIT attributed the high level of global trade friction to a number of factors, including:
- Geopolitical tensions: Ongoing geopolitical tensions, particularly between major powers, have contributed toincreased trade protectionism and friction.
- Economic uncertainty: Global economic uncertainty, including rising inflation and potential recessions, has led countries to prioritize domestic industries and implement protectionist measures.
- Technological competition: Competition for technological dominance has fueled trade disputes, particularly in areas like semiconductors and artificial intelligence.
Looking Ahead
The CCPIT emphasized the need for countries to cooperate to address global trade friction and promote a more open and stable global trading system. The organization also urged businesses to actively engage in dialogue with governments and international organizations to advocate for fair and equitable trade practices.
The CCPIT will continue to monitor globaltrade friction trends and provide timely information and support to businesses, Wang said. We believe that through collaboration and dialogue, we can mitigate trade friction and foster a more prosperous and sustainable global economy.
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