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The Impact of Chinese Overcapacity on Developing Countries

South Africa this week joined a growing list of developing countries around the world that have introduced tariffs on certain Chinese imports to protect local producers. Indonesia, Mexico, Chile, and Brazil, among others, have also introduced similar duties on Chinese steel and other products.

While low-cost Chinese goods are a boon for Global South consumers, they’re extremely problematic for manufacturers in these countries because it’s almost impossible to match the “China Price.”

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