“The first shots in the New Trade War between the US and China showed that Xi Jinping this time is more cautious than during the first term Donald Trump ..”, – WRITE: epravda.com.ua
The first shots in the New Trade War between the United States and China showed that Si Jinping this time is more cautious than during the first term Donald Trump, since China is in a more disadvantageous trade situation. About it reports Bloomberg. Just as Trump gave Canada and Mexico, his 10% duties on Chinese goods came into force. Almost instantly, Beijing announced the introduction of additional duties on 80 US goods (with the entry into force of February 10), opened an investigation into Google, strengthened export control over critically important minerals and added two US companies to its “black list of unreliable entities”. A quick but weighted China’s response shows that Beijing has learned a lesson after the first trade war with Trump when he answered symmetrical duties. Advertising: this time this time was introduced on US $ 14 billion goods only – this is only a small part of the volume that Trump duties . Instead, China has taken other measures, demonstrating his willingness to strike more painful blows on US companies as needed. This strategy reflects both the success of these in diversification of imports from other countries after Trump’s first term and a more difficult economic situation in the PRC itself. The Chinese economy is currently largely dependent on production and exports, as the authorities are trying to reduce the dependence on the overheated real estate market and at the same time fights deflationary pressure. Advertising: according to Larry Hu, the head of the Chinese economy analysis in Macquarie Group Ltd. may lose more because of a huge trade imbalance with the US. “The full -scale tariff war is not beneficial to China,” the expert notes. “Most likely, China will respond to new duties, focusing on internal economic incentives.” The care of Xi Jinping has helped to avoid panic in the financial markets, which have ranged sharply in recent days because of Trump’s variable rhetoric on tariffs. Chinese Seng China Enterprises, Chinese Seng Kongis, raised by 3.5% on Tuesday, while offshore Yuan remained almost unchanged after the morning losses. Now the main question is whether the leaders of the two largest economies in the world will be able to quickly agree. Recall: US President Donald Trump has signed three decrees on the introduction of additional duties on goods from Canada, Mexico and China. This was the first official decision in the trade war. Canada and Mexico leaders promised to answer similar measures. China plans to challenge new Trump duties in the World Trade Organization (WTO), as well as respond to uncertain countermeasures. On Tuesday, China entered duties on some American goods in response to new customs duties, which exacerbated the trade war between the two largest economies in the world. On Tuesday, China announced a wide range of measures against US companies, including Google, agricultural machinery manufacturers and Calvin Klein brand owner. US President Donald Trump said he was in no hurry to talk to China’s Chairman Jinping to try to settle the new trade war between the two largest economies in the world.