CSIS Analysis: Combating Tariff Evasion Will Not Resolve the US-China Imbalance
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CSIS Analysis: Combating Tariff Evasion Will Not Resolve the US-China Imbalance

According to an analysis by the American think tank CSIS, increased US scrutiny over Chinese products exported through third countries will not resolve the trade imbalance between Washington and Beijing.

Researcher Hugh Grant-Chapman from the Center for Strategic and International Studies (CSIS), based in Washington, argues that the administration of US President Donald Trump confuses fraudulent customs duty evasion schemes with the legitimate reorganization of international production chains.

He notes that the White House mistakenly equates entirely legitimate business operations with criminal behavior, referencing the Trump administration's August report titled The Great Transshipment Scam.

In this document, the White House accuses China of using more than 40 intermediate economies to bypass US tariffs by redirecting Chinese goods.

In Grant-Chapman's view, the US administration has expanded the concept of re-export, which traditionally implied goods passing through third countries without substantial transformation, to include products actually manufactured in these markets using Chinese components.

The researcher acknowledges documented cases of customs fraud, particularly those related to batteries, steel products, and solar panel components, but insists that these practices only explain part of the indirect presence of Chinese products in the American market.

He emphasizes that re-export itself is not inherently illegal or undesirable from a governmental policy perspective.

The study mentioned by CSIS shows that in 2024, Mexico and Vietnam accounted for 23% and 15% of China's added value, which indirectly flowed into the US, respectively.

Nevertheless, the research concludes that most of these flows are driven by industrial processing rather than simple goods redirection.

A study by the US Federal Reserve estimates that China's production in Mexico contributed to an increase in Mexican exports by approximately 14 percentage points after the imposition of tariffs on Chinese goods in 2018 and 2019, whereas direct re-export was less than one percentage point.

The CSIS analysis also demonstrates that countries such as Malaysia, Mexico, Thailand, and Vietnam have not recorded a wide increase in the matching of goods imported from China and exported to the US.

Conversely, Cambodia and Laos show more evident signs of growth in these flows, especially concerning steel products and photovoltaic elements.

For Grant-Chapman, the fundamental problem lies in the structural imbalance of the two largest global economies. In China, high trade surpluses are maintained by low domestic consumption, state support for industry, and an export-oriented growth model.

In the United States, import demand is stimulated by low savings rates, budget deficits, and increased investment, particularly in artificial intelligence infrastructure.

The researcher explains that these macroeconomic foundations place the United States in the position of a net importer, and China as a net exporter.

He recalls that in 2025, Chinese exports grew by 5.5%, despite sales in the US declining by approximately 20%, with some products being redirected to other markets, including the European Union.

CSIS also points out that many intermediate countries currently benefit from US tariffs that are 10–20 percentage points lower than those applied to China, which encourages companies to move production operations to these markets.

Grant-Chapman concludes that a sustainable path requires a more thorough analysis of global trade standards, a reassessment of the impact of US tariff differences on the market, and open dialogue with trade partners and business leaders.

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MEPs demand China revise trade relations and engage in direct dialogue
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MEPs demand China revise trade relations and engage in direct dialogue

MEPs called for restoring balance in trade relations with Beijing and maintaining 'direct' dialogue with Chinese authorities after meeting Trade Minister Wang Wentao during their visit to China.

Spanish MEP Juan Ignacio Zoido of the European People's Party stated on social media platform X that Europe's position is 'clear': trade relations must be 'balanced so they remain beneficial for all.' This Spanish parliamentarian also participated in the meeting with Wang.

He added that 'Europe cannot continue to allow a deficit of one billion euros per day.'

German MEP Egin Eroglu emphasized on the same social network the importance of understanding Chinese perspectives on bilateral trade relations. He noted that it was particularly valuable to personally hear the minister's opinion.

Eroglu, who chairs the European Parliament Delegation for China Relations, stressed that Wang presented his view on recent negotiations with European Trade Commissioner Maroš Šefčovič. Eroglu believed that knowing the course of these talks 'from the Chinese point of view,' as well as Beijing's expectations and vision for the future, provided important information about bilateral trade ties.

He also asserted that 'trade relations cannot be analyzed in isolation. They are closely linked to industry, technology, research, security, and geopolitical events.' The MEP insisted on the need to directly hear Chinese positions and assess them in the appropriate context, 'instead of judging them from afar,' although he did not disclose specific details of the conversations.

The delegation of 12 MEPs, led by German Social Democrat Bernd Lange, who is the chairman of the European Parliament's Committee on International Trade, began its three-day visit to China on Tuesday. The trip also includes planned visits to Hangzhou and Shanghai in the eastern part of the country.

On the first day, the delegation also met with the European Union Ambassador to China, Caspar Weldkamp, other European diplomatic representatives, and members of the EU Chamber of Commerce in this Asian country.

This visit follows a recent agreement between Brussels and Beijing regarding hybrid vehicles, which, according to public sources, stipulates an initial quota of 350,000 units annually, although both sides have different interpretations of its scale. Furthermore, the trip comes as European leaders advocated for strengthening the bloc's trade defense tools in response to the imbalance in relations with China, and European Commission President Ursula von der Leyen announced new proposals for December.

Datafolha survey indicates that 27% of Brazilians view China as a reliable trade partner, compared to 22% for the US
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Datafolha survey indicates that 27% of Brazilians view China as a reliable trade partner, compared to 22% for the US

A new survey conducted by Datafolha, released this Friday (23rd), revealed that 27% of Brazilian voters consider China a reliable trade partner for Brazil. In comparison, the percentage of voters who express the same confidence regarding the United States is 22%.

Analyzing the evolution compared to July 2025, a shift in voter sentiment was observed. The proportion of those who did not trust China as a trade partner decreased from 29% to 24%, while the share of those who trust very much increased from 23% to 27%. Regarding the United States, distrust fell from 46% to 38%, and the very high confidence index rose from 19% to 22%.

Variation in assessment according to voting intention

The perception of trade relations also differs depending on presidential preference. Among voters for Flávio Bolsonaro (PL), 31% state they do not trust China as a Brazilian trade partner, a significantly lower figure among supporters of Lula (PT), where this percentage is 16%. In the case of the United States, the pattern reverses: 61% of Lula's voters express distrust in the country, while only 14% of Flávio's voters intend to vote for him.

Detailed data shows that, regarding the relationship with the US, 22% can trust very much, 36% can trust little, 38% cannot trust, and 4% do not know. Regarding the relationship with China, 27% can trust very much, 44% can trust little, 24% cannot trust, and 6% do not know.

Status of the Presidential Race

Regarding the presidential race, Flávio Bolsonaro leads with 47% of voting intentions, slightly ahead of Lula, who registers 46%. Whites and null votes total 5%, and undecided voters represent 2%. When considering only valid votes, excluding whites, nulls, and undecideds, both candidates have 50% each, which is the criterion used by the Electoral Justice to define the winner.

This survey was commissioned by Globo and Folha de S.Paulo. Datafolha interviewed 2,154 people aged 16 or older between October 20 and 22. The survey has a margin of error of two percentage points, plus or minus, and a confidence level established at 95%. The official registration of the survey is BR-09709/2026.

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