Experts didn’t expect the response from the PRC will be so hard
– The US and China was on the verge of a trade war after the administration of us President Donald trump unveiled the details of the plan the introduction of a 25 percent duty for goods of Chinese exports totaling about $50 billion a year.
Chinese authorities responded to the mirror, saying on Wednesday that the intention to impose the same duties on goods the U.S. exports the same amount.
The actions of the US against China are the most severe since the normalization of diplomatic relations between the two countries in the 1970s, the newspaper the Wall Street Journal.
At the same time, and the response of China was more serious than expected. Many believed that Beijing will make concessions, recognizing that the imbalance in trade relations between the two countries is excessive and unacceptable. However, China went on to more drastic measures, affecting key products of American exports.
However, the representatives of the Chinese authorities declare readiness to negotiate with the United States.
The United States aimed at the industrial policy of the PRC
The US plan envisages the introduction of a 25 percent import duties on a wide range of Chinese goods, including medicines and chemical products, automobiles, motorcycles, railway equipment, industrial and medical equipment, aircraft parts, satellites – a total of more than 1.3 thousand items.
Экономика03 APR 2018Белый house has accused Beijing of unfair trade practicesthe read more
The new duty will also apply to a number of consumer products – dishwashers, television sets and car parts. However, it will not affect key categories of retail sales such as clothing, shoes, mobile phones and furniture – the rise in prices of these commodities through the imposition of high duties would cause a negative reaction of American consumers, writes the WSJ.
A list of products based on the opinion of the United States trade representative what category of Chinese products unfairly benefit from the industrial policy of the PRC and promoted by the authorities of the country plan for the development of strategically important technologies.
The United States aimed at sectors that Beijing is openly trying to promote, and this, according to analysts, shows that Washington intends to prevent China to gain global leadership in the technology sector, which he is seeking.
Trump and members of his administration repeatedly accused China of years the theft of American intellectual property.
American companies have the opportunity to 22 of may this year, to raise objections about the impending action. Public hearings on the issue in Washington will be held may 15.
China pays in the same coin
China responded with countermeasures to the actions of the U.S. Ministry of Commerce of China announced on Wednesday that it will impose 25% duty 106 items of us exports in response to US actions. The number of items of goods in respect of which the PRC imposes a new duty, significantly less compared to the 1.3 million claimed by the United States, however, the annual export volume of this product in China is about $50 billion.
The new duty will operate, particularly for American cars and aircrafts, chemical and tobacco products, beef and agricultural goods including soy beans, wheat, corn and cotton.
The entry into force of the new duties will depend on when it happens in the US, reports Bloomberg, citing its sources.
The actions of China affect the key products of American exports
The latest response from China to the American authorities turned out to be tougher than expected by many experts, given the rather mild reaction of Beijing to the recent introduction of a US tariff of 25% on steel imports and 10% on imports of aluminium.
Previously, Beijing announced the introduction from April 2, duties on 128 types of goods U.S. exports total about $3 billion a year. So for pork from the United States now has a duty of 25%, the tariffs on the import of China frozen pork, wines, some fruits, nuts, ranged from 15% to 25%.
The measures announced by the Chinese authorities in the environment affect key elements of the us export – Boeing and soy beans, and it shows that the previous steps Beijing has taken not for the sake, say experts.
“The response of China turned out to be tougher than expected, nobody thought that China would introduce new tariffs for such sensitive and important areas of American exports like airplanes and soy beans, says Scotiabank analyst in Singapore Gao Ki. Investors believe that a trade war will ultimately hurt both countries and their economies.”
Boeing shares during the prior trading on Wednesday fell by 6%.
May futures for soy beans, in the course of trading on the CBOT on Wednesday lost 4.7 percent. China buys about a third of US get yields of soya-beans, last year the volume of us deliveries of soya-beans in China reached $13.9 billion.
Wheat futures for delivery in may has fallen in price on 1,8%, corn – by 3.4%.
“The response of China has both economic and political weight, as agricultural States are key regions that support trump” – says the analyst of Shanghai JC Intelligence Co. Monica Tu.
China doesn’t want trade war
While trump believes that a trade war “that’s good” and the United States can “easily win”, China does not need them. As noted by the Deputy Minister of Finance of the PRC Zhu Guanyao, China doesn’t want trade war, and do not intend to hasten the introduction of new fees.
Beijing leaves open the possibility for negotiations, said Zhu Guanyao.
Meanwhile, Deputy Minister of Commerce of China shouven Wang said that Beijing could not agree on the demand of the trump on the reduction of the surplus balance in trade with US $100 billion.
The balance of trade depends on market factors, and China alone can not reduce the surplus balance in trade with the United States, said van Showing.
Futures on the background of the U.S. stocks are falling sharply
Futures for U.S. stocks are falling sharply, indicating a weak opening of the U.S. stock market on Wednesday.
The value of the June futures E-Mini index Standard & Poor’s 500 by 13:30 Moscow time has decreased on 1,8%. Futures for the Dow Jones and NASDAQ 100 are retreating by 2.3%.
The major European stock indices losing 0.7% to 1.3% on fears of the negative impact of the trade war between the two biggest economies in the world to other regions.
The dollar depreciates against the Euro and the yen. The Euro traded at $1,2280, which is 0.1% higher than the day before. The U.S. dollar exchange rate against the yen fell 0.5% to 106,13 yen.
Gold, which along with the Japanese yen refers to the assets of “safe haven”, rose in the course of trading on 0.6%, to $1,340 per ounce.
Follow us on Yandex.The news