China responds to the US with a tariff increase on goods valued at 60,000 million dollars

       

The response of the Asian country in the open trade war with Washington will apply from June and affects products already taxed in September.

China has responded to the US This Government will raise tariffs from 10% to 25% to 5,140 US products worth 60,000 million dollars. The measure comes as a reprisal because Washington increased its tax on Friday to a list of products from the Asian country worth 200,000 million dollars. The new Chinese tariffs have been announced within 100 minutes of Donald Trump coming to Twitter to advise Beijing not to respond to the hike activated three days ago.

“It will only make things worse,” the Republican said Monday. The US applies tariffs of 25% to half of the Chinese imported products, worth 250,000 million, and evaluates to redouble its challenge to Beijing with measures to tax goods to the remaining 300,000 million.

The Chinese tariff increase will take effect on June 1, approximately the same date that the US will begin to effectively apply: when the Chinese products included in the measure arrive in US ports and depart after May 10.

As indicated on Monday by the Ministry of Finance on its website, the measure announced represents “a response to unilateralism and protectionism.” “China expects the United States to return to the right track of bilateral trade negotiations, cooperate with China and be at an intermediate point with China, in such a way that a mutually beneficial agreement is reached and that it suits both, on a basis of equality and mutual respect. ”

China had already assured this weekend, through the mouth of its deputy prime minister and head of the trade negotiations with the United States, Liu He, that Washington’s pressure measures to try to force him to accept an agreement under conditions that would not have any effect. considers harmful to their sovereignty. On Monday, Foreign Ministry spokesman Geng Shuang reiterated the message in his daily press conference: Beijing “will never surrender to external pressure,” he said. “We have the determination and ability to defend our legitimate interests.”

Read more: US raises tariffs to China despite continuing negotiations

Geng did nothing but repeat what has been the message of Beijing since Trump announced on day 5 that it would raise tariffs if an agreement was not reached before last Friday. Beijing, although it insists that the talks are still ongoing and the idea is to try to reach an agreement with the United States as soon as possible, stresses that it will not sign any document that it believes harms its interests. That your economy can withstand the adverse effects of US taxes. And that, of course, will not make any gesture that can give the impression that its president, Xi Jinping, has bowed his neck in front of the US president.

The Chinese official media have used this Monday a message of resistance and challenge. The effect that the new tariffs will have, said state television CCTV, is “totally assumable”. “Nothing happens; China will know how to turn the crisis into an opportunity and use it to test its capabilities, to make the country even stronger. ”

Provocation

With that mental attitude already underway, Trump’s words on Twitter have sounded Monday as a provocation to Chinese ears. “I openly tell President Xi and all my many friends in China that China will be very hurt if they do not reach an agreement, because the companies will be forced to leave,” he has tweeted.

If in Zhongnanhai, the residential complex of the Chinese power dome, someone still advocated to continue calibrating the response to US tariffs before announcing it, those statements have been the final push to make the measures public.

The trade war was reopened last week with Trump’s announcement that it would impose new tariffs, when the markets assumed that the two countries were about to sign a pact that would put an end to their trade differences. But, according to the Reuters news agency, Beijing returned the draft agreement to Washington with huge deletions. All those that alluded to changes in their legislation to guarantee the reforms that the United States demanded, on issues such as the protection of intellectual property or the forced transfer of technology. China, which considers these demands an interference in its sovereignty, has denied that it changed its position at the last moment, but insists that what it wants is a “balanced” document in which the “dignity” of the two countries is respected.

After the imposition of new US tariffs on Friday, the round of talks between the US and China, number 11, concluded in Washington without a date for a next meeting. It was agreed that it would be held in Beijing. The White House economic adviser, Larry Kudlow, has indicated that Trump and Xi Jinping could hold a bilateral meeting in Osaka (Japan), on the margins of the G20 summit to be held in that city at the end of June.

In internal key

Trump uses conflict to do internal politics. “China has taken advantage of the United States for so many years that it has a great advantage,” he repeated, citing the “work” of the presidents who preceded him in the White House. The messages also refer to former Vice President Joe Biden, who leads among the Democrats the polls for the 2020 elections.

The Republican believes that the tactic of Beijing is to wait for the Democrats to win the elections. The tweets on litigation also refer in a constant way to agriculture, the sector most affected so far by the rise in customs taxes. Trump promises them help. And for consumers it says they can “escape tariffs” if they buy “US products” instead.

Uncertainty has burdened Wall Street. The Dow Jones has started the week with falls, with Apple, Boeing and Caterpillar among the most punished, by the effect of trade war in companies that manufacture and buy from China.

CHRONOLOGY OF THE COMMERCIAL WAR

  • January 2018. The US imposes tariffs on solar panels and washing machines imported from all over the world.
  • March 2018. The US imposes tariffs on steel and aluminum imports from around the world.
  • April 2018. China responds with the imposition of tariffs on 120 types of American products valued at 3,000 million dollars.
  • July 2018. Washington imposes new tariffs on Chinese goods to products valued at 34,000 million dollars. Beijing responds with tariffs on US products equivalent to another 34,000 million.
  • August 2018. The US announces tariffs on more Chinese products, valued at 16,000 million. Beijing counterattacks with tariffs equivalent to another 16,000 million on goods imported from the United States.
  • September 2018. Washington adds 10% tariffs on a list of China’s products worth 200 billion. Beijing responds with tariffs on American goods valued at 60,000 million.
  • May 2019. The White House decides to increase to 25% the tariffs imposed on the list of products approved in September. Beijing announces reprisals on May 13, with a tariff increase of 10% to 20-25% on products valued at 60,000 million and already taxed in September.

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