A magazine bearing a cover of President Donald Trump with the words “Trump Shock Again” exhibited with other magazines in a bookstore in Beijing on Tuesday, February 4.
Andy Wong / AP
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Andy Wong / AP
BEIJING – Chinese reprisal prices on a range of American products should take effect on Monday, while the commercial friction between the two competitors warmed endlessly.
Prices from China Vary from 10% to 15% and are applied to crude oil, liquefied natural gas, agricultural machines and select other products from the United States.
They were announced last week in response to the The Trump administration’s decision to hit China With a service of 10% between the edge in order to put pressure on Beijing to do more to stop the flow of fatal fioing fioing opioid in America. China is a major source of chemicals used by Mexico cartels to make the drug.
Asked about the prices, the spokesman for the Chinese Foreign Ministry, Guo Jiakun, told a daily press conference on Monday in Beijing, there are no winners in a trade war or a tariff war.
“It harms the interests of the two peoples,” he said. “What is necessary now is not the unilateral taxation of prices but dialogue and consultations based on equality and mutual respect. We urge the American part to stop its unjustified actions and abstain from politicize and instrument economic and commercial problems. “
Beijing’s response did not stop with reprisals. Authorities announced last week an antitrust survey on Google, added two other American companies to a “unreliable” entities and increased export controls on rare metals that are crucial for supply chains technology.
Harry Murphy Cruise, head of the Chinese economy at Moody’s Analytics, said the answer was a warning.
“It is China saying: we do not want to worsen the situation, and therefore our answer will be quite sober compared to what we could do. But by putting some of these export controls on critical minerals and land Few he says in the United States: we can make him really difficult for you if that is getting worse, “he said.
During Trump’s first term, Beijing responded proportionately to the prices, ensuring that the effective rate rate on American products entering China – the average for all imports – corresponded to Chinese imports to the United States.
Murphy Cruise said that for the moment, China allowed the effective rate rate on its American imports to be much lower, while sending a signal. American prices cover around $ 450 billion in Chinese products, while Chinese prices have reached $ 15 billion to $ 20 billion in American products, he said.
China dominates the rare earth industryAccounting of most of the global exploitation and refining.
When the Trump administration announced the 10% rate on China, it also threatened 25% Prices on goods from Canada and MexicoBut retired after the last -minute negotiations. The White House said at the time that she expected a call between Trump and Chinese chief Xi Jinping, but later Trump said he was not in a hurry to speak to XI.
“The biggest unknown is when President Xi and President Trump meet and discuss, and where these discussions take place?” The risk is that he takes a route similar to the last time he is For-tat. “
The increase in commercial friction between the two largest economies in the world arrives at a difficult time for China, where The economy was slow For more than two years, because the authorities are struggling with a real estate crisis, a soaring debt and a deflation.
In the United States, some analysts expect the risk of inflation to take a break from the Trump administration with regard to prices. Trump threatened to impose prices of 60% or more on Chinese products during the presidential campaign.
But Trump said that on Sunday, the more on Sunday came. He said he would impose 25% prices on all imports of steel and aluminum, and threatened with prices in Taiwan, Europe and others.
Aowen Cao contributed to this story.
