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US accuses Chinese exporters of “Great Transshipment Scam”
A US report says the alleged scheme moves China-origin goods through more than 40 third countries, involving an estimated US$40 billion to US$303 billion in annual suspect shipments.
The Trump administration has released a sharply worded, 25-page report accusing Chinese exporters of orchestrating an “illegal transshipment” system designed to route goods through lower-tariff jurisdictions to gain more favorable treatment when entering the United States, according to SCMP Economy.
The document alleges that companies use limited assembly, relabeling, repackaging, re-invoicing, and false country-of-origin declarations, and it traces the strategy to China-US tariff actions that began in 2018.
SCMP Economy reports that the administration cited third-party estimates for the annual value of goods tied to illegal or suspect transshipment, spanning roughly US$40 billion to US$303 billion.
The report further estimates that, assuming US$75 billion in annual illegal transshipment, about 450,000 American jobs have been displaced and up to US$150 billion of GDP has been lost, while describing those figures as model-based illustrations rather than observed counts.