China PM in Europe to bolster ties amid trade war with US

Ann Santiago
July 9, 2018

USA customs officials will begin collecting an additional 25 percent tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts. They kicked in just after midnight ET, which is noon in Beijing.

When the USA on Friday implemented tariffs on $34 billion worth of Chinese goods, China swiftly hit back with its own tariffs on goods imported from the US, including a 25 percent tariff on soybeans.

Trump and his advisers argue the tariffs are necessary to pressure China into abandoning unfair practices such as stealing intellectual property and forcing American companies to hand over valuable technology.

China's ruling Communist Party has insisted on making changes at its own pace while sticking to state-directed technology development seen as the path to prosperity and global influence.

Analysts are concerned that a trade war between the US and China would undermine markets, trade, and the ties between the two countries, The Washington Post reported.

The clash with China comes as the Trump administration is also fighting over trade with American allies such as Canada and the European Union.

Chinese Commerce Ministry spokesman Gao Feng said that the proposed USA tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

-China tit-for-tat tariff fight is likely to shrink trade volume worldwide, which would weigh on the global economy that has been on a recovery track.

The US has more than five times as many trade disputes as China. Beijing has announced reforms this year including ending limits on foreign ownership in its auto industry, but none directly addresses complaints that are fueling its conflict with Washington. The president said USA tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

Retaliatory measures by China also include taxes on imports of a variety of United States dairy products.

Mr Trump said: "You have another 16 [billion dollars] in two weeks, and then, as you know, we have $200bn in abeyance and then after the $200bn, we have $300bn in abeyance. OK?"

"What we're hearing from a number of CFOs is if the trade issue continues to dominate the headlines and create even more uncertainty, those plans may be on hold", she said.

Washington increased tariffs at 12:01 a.m. ET on $34 billion USA worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

China has said it would respond with tariffs on hundreds of US goods, including top exports such as soybeans, sorghum and cotton, threatening U.S. farmers in states that backed Trump in the 2016 US election, such as Texas and Iowa.

'We urge the two governments to come back to the negotiation table, ' said Zarit. A long list of targeted Chinese products directly purchased by Americans such as TVs, printers and washing machines was sharply revised in June following a trade hearing. "If America is cheap, they go to America".

So Trump should push, but he can't go too far, because at the end of the day, it's the American consumer who's going to get hurt the most. Friday, Washington time, on $34 billion of annual imports from China.

A U.S. court on Friday imposed the maximum US$1.5 million fine for theft of trade secrets by the Chinese company Sinovel in a case that typified Washington's complaints about Beijing's conduct. "What we will likely see happen in the short-term is apples that were destined for export markets will instead overhang the USA market", she said.

"One client believes the prices will inevitably hiked, which will lead to the fall of consumption demand, while the other also considers cutting the types of products on the market", according to Wu Tianwen, chairman of the company.

Mr. Trump is casting the trade battle as a long-term effort to bring back to the United States jobs that have been lost because of Chinese imports and what the USA considers unfair trade practices, such as pressuring U.S. firms to transfer technology to Chinese firms.

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