Published: Mon, July 16, 2018
Global Media | By Derrick Guzman

Chinese surplus with USA swells

Chinese surplus with USA swells

Before day five of the confrontation even came to the end, Bloomberg broke the news (paywall) that American officials were drawing up lists of additional Chinese products totaling $200 billion to tax at a 10 percent rate, to be published "likely this week". China retaliated with higher duties on a similar amount of American goods. Since the "trade war", which officially started on July 6, we had believed that the Chinese government's view has been "a strong counterattack and a battle to stop the war are the best choices".

Tariffs of that magnitude, which now undergo a two-month review, would basically equal all the goods the USA imports from China, which promised retaliatory action and pledged to lodge a complaint with the World Trade Organization.

China tried to step up pressure on Washington in their growing tariff war Thursday by suggesting USA companies lobby American leaders, while a Korean union warned President Donald Trump's threat of higher auto import duties could lead to job losses in Alabama. Beijing criticized the measure but has yet to say how it might respond.

A man waits for the goods to be load on his tricycle at a dealer selling imported seafoods at the Jingshen seafood market in Beijing Thursday July 1
A man waits for the goods to be load on his tricycle at a dealer selling imported seafoods at the Jingshen seafood market in Beijing Thursday July 1

India has flagged concerns of its large trade deficit with China, visa restrictions for Indian professionals and the challenges faced in exporting IT services, meat, rice and medicines to Beijing at the World Trade Organization (WTO).

European Commission spokesman Margaritis Schinas said on Friday that discussions with China would focus on "trade and investment, on the commitment to combating climate change and investing in clean energy and on foreign and security issues, including the situation on the Korean peninsula".

"China has endeavored to liberalize and facilitate trade and investment, safeguarded the dispute settlement mechanism, fully participated in trade policy review, and vigorously supported the integration of developing members into the multilateral trading system", Wang said.

As for negotiations, he said, "the two sides have not been in touch about re-starting talks".

"Chinese exports held up well on the eve of USA tariffs", Julian Evans-Pritchard of Capital Economics said in a report.

The union said in the event of a downturn, its contract requires Hyundai to idle factories overseas before those in South Korea.

Hyundai Motor Co.'s labor union says steep auto tariffs could cost The European Union warned auto tariffs could lead to global retaliation.

Also this week, Chicago Mayor Rahm Emanuel visited Beijing on a mission to try to lock in a $1.3 billion deal for a Chinese company to assemble rail cars in his city. The mayor said he was committed to the project but gave no indication whether the Chinese company had given him reassurances about its status. "They would rather work something out, but they're not scared if this is where it goes".

Like this: