(LEAD) U.S. flags S. Korea, Japan, EU, others over transshipment risks involving China-linked goods

The U.S. administration has flagged South Korea, Japan, Taiwan, and the European Union among numerous countries facing transshipment risks related to China-linked products, according to a White House report released on Thursday. The report, titled "The Great Transshipment Scam," identifies approximately 40 nations associated with elevated transshipment risks.

It explains that Chinese exporters frequently route goods through third countries, employing various methods like relabeling, repackaging, and false country-of-origin claims to evade U.S. tariffs and other trade remedies. The report aims to create a "detective border" using artificial intelligence to support U.S. Customs and Border Protection in identifying high-risk shipments, facilitating duty collection, and implementing other measures.

Countries such as South Korea, Japan, Taiwan, the EU, India, Canada, Mexico, and Israel are categorized as Tier 1, or "diversified scale leaders," due to their diversified industrial bases and significant U.S.-bound export platforms. Tier 2 countries, including Brazil, Indonesia, Malaysia, Thailand, Turkey, and Vietnam, are classified as "scale leaders with significant economic integration" and are noted for having deeper involvement in China-linked supply chains, input sourcing, manufacturing, logistics, and regional rerouting channels.

Tier 3 comprises smaller economies like Switzerland, Singapore, the Philippines, the United Arab Emirates, Chile, and Colombia, which are classified as "small, opportunistic Chinese targets" due to their lower transshipment volumes and specific weak-link advantages. The report highlights South Korea's semiconductor belt in Gyeonggi Province, suggesting that it could potentially disrupt semiconductor production in other U.S.-based locations by providing a conduit for integrated circuits.

The estimated range of potential transshipment or related trade-transfer exposure is between US$40 billion and $303 billion annually.