White House accuses more than 40 countries of helping China

The US administration accused more than 40 countries of helping China circumvent American tariffs by rerouting Chinese goods through third countries, AzerNEWS reports, citing Financial Times.

The report, titled "The Great Transshipment Scam," found more than 40 countries, ranging from Mexico to Israel, involved with what the report described as a "global Shadow Transshipment Network through which China’s tariff evasion now moves."

According to the information, Chinese goods may have been redirected through countries where lower tariffs apply. Beijing allegedly used third countries to make minor modifications to products, creating the appearance that they had been manufactured locally.

The countries named in the report include Canada, Mexico, Israel, Switzerland, South Korea, Taiwan, India and Japan.

The White House estimates that the countries involved may have facilitated the avoidance of tariffs on around $60 billion worth of trade. The report also cited other US government assessments that put the estimated value of the alleged tariff evasion at between $40 billion and $303 billion.

"For years, the Great Transshipment Scam has allowed Communist China to launder its exports through more than 40 countries, rob our Treasury of tens of billions of dollars, and steal the paychecks of American workers," White House Office of Trade and Manufacturing Policy Director Peter Navarro said.

The report comes ahead of an expected September visit to the U.S. by Chinese President Xi Jinping.

Image: Nathan Howard / Reuters