US Names India Among 40 Hubs in China's Alleged Tariff Evasion Scheme

The United States has named India among approximately 40 global hubs allegedly used by China to circumvent tariffs through a practice termed the "Great Transshipment Scam." According to former White House trade advisor Peter Navarro, China has been exploiting these intermediary countries to obscure the origin of its goods.

Navarro explained that China engages in "minor processing, relabeling, repackaging, reinvoicing, or routing changes" within these hubs. These alterations are designed to create a misleading impression that the products originate from a country other than China, thereby avoiding import duties imposed by other nations.

This scheme allows Chinese manufacturers to continue exporting goods to markets that have placed tariffs on Chinese products. By routing their goods through these 40 identified hubs, they can present the items as if they were produced in these third countries, effectively bypassing trade barriers. The US has highlighted this practice as a significant challenge to fair trade and a method used to undermine existing tariff structures.

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China began using these third countries for minor processing, relabeling, repackaging, reinvoicing, or routing changes that created the appearance of a new national origin