Influence of China’s Carbon Neutrality policies on Trade Dependent Countries with China

This study aims to analyze the potential impact of China’s carbon neutrality policy on countries with high dependence on Chinese trade. Through an analysis of the GTAP-E model, this study shows that China’s carbon neutrality policy could intensify competition with other countries in the manufacturing sector. The study finds that China’s carbon neutrality policy could increase living costs in analyzed countries, regardless of their level of dependence on Chinese trade. This is because China’s policy may lead to an increase in the cost of production, which could be passed on to consumers in the form of higher prices. Therefore, it is necessary for countries with high dependence on Chinese trade to develop strategic planning and policy responses to mitigate the potential negative impact of China’s carbon neutrality policy. The findings of this study suggest that there is a need for a coordinated approach to addressing the potential negative impacts of China’s policy.