Five methods China is hitting back against American tariff

Trade war between the world’s two largest economies has increased after China returned against the start of tariffs by the US with its own measures.

Beijing has determined the US to target specific American goods along with other measures, along with other measures, along with other measures, along with other measures, along with other measures, along with other measures, on all Chinese imports.

In some ways, this is not the latest tight-for-cut anything new and creates a long-running trade dispute between nations, tariffs have already been imposed and threatened on various items since 2018.

Trump has said that he has planned to talk to Chinese President Xi Jinping, so a deal can be killed so far. But if China proceeds with its response on 10 February, what can be the plan?

For Trump’s tariffs, a part of China’s counterparts is to announce its own import taxes on American coal and liquefied natural gas (LNG), and 15% charge on crude oil.

Beijing’s reaction means that companies seeking importing fossil fuels from the US will have to pay taxes to do so.

China is the world’s largest importer, but it is the most from Indonesia, although Russia, Australia and Mongolia are also among its suppliers.

When it comes to America, China is increasing the import of LNG from the country, which is almost double 2018.

But its overall fossil fuel trade is modest, imports with the US in 2023 for just 1.7% of China’s total crude oil purchased from abroad. This suggests that China is not dependent on the US and hence the impact of tariffs on its economy can be minimal.

Rebecca Harding, a business economist and chief executive officer at the Center for Economic Security Think Tank, said that China can easily supply more than Russia, where it is already buying oil on cheap as Kremlin is already buying oil. Wants

On Flipside, America is the world’s largest LNG exporter, and therefore there are many other customers, especially the UK and the European Union.

Along with fuel, China has slapped 10% tariffs on agricultural machinery, pick-up trucks and some large cars.

But China is not a major importer of America’s pick-up and it receives most of its cars from Europe and Japan, so 10% tariff consumers will not be killed very difficult on earlier imports.

In recent years, China has increased investment in farm machinery to increase production and reduce its food security and strengthen its food security.

Therefore, the introduction of tariffs on agricultural machinery may be another step to promote the domestic industry.

Julian Evans-Prichard, head of China Economics at Consultancy Capital Economics, said all tariff measures were “quite modest, at least relative to US moves”.

He suggests that China’s targeted goods represent around 20 billion (£ 16bn), which is about 12% of China’s total imports from the US – the price of annual imports.

“This is to cry more than $ 450BN of Chinese goods being targeted by the US.”

But he said that China was clearly calibrated to try to send a message to the US (and domestic audiences).

Chinese authorities have also announced some non-tariff measures, one of which is an anti-Economic Investigation in the US Tech giant Google.

It is not clear what will involve the investigation, but for reference, Google’s search services have been blocked in China since 2010.

The company still has some commercial appearance in the country through providing apps and games in Chinese markets by working with local developers.

But China only produces about 1% of Google’s global sales, which suggests that if it completely cuts relations with the country, it will not be very bad.

China has added PVH, American company, owned by designer brands Calvin Klein and Tommy Hilfiger, its so -called “incredible unit” in the list “and they have accused them of” discriminatory measures against Chinese enterprises “.

In this list, on which other American firms are made in 2020 by Beijing amidst the temperature of business tension.

For Calvin Klein and Tommy Hilfiger, being in the list of China will make it difficult to trade in the country. They can withstand restrictions, including fines, and canceled the visa of their foreign workers’ work.

According to Andreas Shotar, a professor of international trade at Western University in Ontario, Canada, will also go to firms factories to investigate regulatory operations.

The US has its own “unit list”, which prevents some organizations from purchasing products from American companies without approval from Washington.

“China is coming back in the same way as President Trump is accusing Chinese companies. It is part of the US and China-operated D-Camping,” said Pro Shaoter.

While tariffs have been placed on companies wishing to import goods from abroad, China has also imposed export control over 25 rare metals.

Some metals are the major components for many electrical products and military equipment.

China has mastered the ability to refine such metals, and produced about 90% of global sophisticated production.

The restricted list includes tungsten, which is difficult for the source and is an important material for the aerospace industry.

While exports are banned, Mr. Evans-perfect of Capital Economics, stated that it was notable that China has imported from the US, which is used to make high-end chips, semiconductor machinery, pharmaceuticals and aerospace equipment. Any solution.

The previous round experience of sanctions suggests that exports will decline rapidly as companies scramble to obtain licenses, a process that takes several weeks.

When it comes to the impact of restrictions, it appears that America has a plan. On Monday, Trump said he wanted Ukraine to guarantee the supply of more rare earth metals in exchange for the support of $ 300 billion in his fight against Russia.