China benefits from US' GSP withdrawal on India
At the beginning of March this year, Trump decided to revoke the annual Generalized System of Preferences (GSP) for India. This system was originally designed to assist the economic development of developing countries.
Now the US Trade Representative’s decision to cancel will damage the US and India’s trade relationship. India might also retaliate against the US for tariffs on steel and aluminum.
At the same time, Indian products exported to the US as tariff concessions will be replaced by China due to the decline in price competitiveness. The result was good for China, but it will also accelerate the expansion of the US trade deficit with China.
