The United States has accused more than 40 countries of helping China circumvent American tariffs by routing Chinese exports through nations with lower import duties.
The White House made the allegation in a report released on Thursday, naming countries including Canada, India, Mexico, Japan and South Korea.
According to the report, between $30 billion and $300 billion worth of goods may have been routed through third countries to avoid higher US tariffs.
The practice, known as transshipment, involves moving goods through another country before they reach their final destination.
The US alleges that some Chinese companies have used the system to conceal the true origin of products and secure lower tariff rates.
White House trade adviser Peter Navarro said the practice had cost the United States billions of dollars in revenue and American jobs.
The White House described the alleged scheme as a sophisticated global network of tariff evasion and said the US had deployed artificial intelligence tools to detect suspicious transshipment activities.
China rejected the accusations, with a spokesperson for its embassy in Washington saying that “trade wars have no winners” and opposing US tariff measures targeting Chinese companies.
The report comes ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping in Washington in September. Analysts say the allegations could strengthen Washington’s negotiating position in upcoming trade discussions.
