USA announced the introduction of new duties on Chinese goods
USA announced the introduction of new duties on Chinese goods, this time totaling $ 200 billion. In Washington, the step is called a response to the reluctance of China to make concessions. In Beijing made it clear they do not intend to sit idly by. China plans to file a complaint against the actions of the United States to the world trade organization.
The administration of Donald trump has prepared a new list of goods from China, which will be introduced fees in 10%, the list is published on the website of the U.S. Trade representative. According to the document, new duties were more than 6 thousand names of the goods. Prices will rise by seafood, fruits, vegetables, grain, tobacco, burglar alarm and car parts. Chinese authorities have promised to respond appropriately.
Hua Chunyin, the representative of the Chinese foreign Ministry said: “the actions of the US – typical bullying, and China will take necessary countermeasures to protect their legitimate rights and interests. I also want to say that this opposition between a unilateral position, and position, taking into account the interests of others. Between protectionism and free trade, and between hegemony and system of rules. China will continue, along with the rest of the international community, to stand in defense of the existing multilateral trade rules”.
Duty should come into force two months allotted for the discussion of this initiative. Earlier, on 6 July, the US imposed imposed 25% duty on goods from China at $ 34 billion, the list was later extended by another 16 billion on the same day, Beijing responded with a similar action, entering duties on American goods 50 billion
“It can create problems, economic problems – the loss of jobs, loss of profit and income for many people on both sides of the Pacific,” said former U.S. Secretary of Commerce Gary Locke.
Trade conflict between the US and China usually explain the imbalance in the structure of imports and exports in bilateral trade. Washington believes that the Chinese manufacturers, taking advantage of the openness of the us market, imported goods in the United States, undermining the position of American manufacturers. At the same time, according to the United States, the China market remains closed, which causes unfair competition. In addition, Washington accused Beijing of stealing us technology and intellectual property violations.
Richard Perry, analyst at Hantec Markets, says: “the Increased isolation is not necessarily good for the United States. The company is not very keen to invest in the United States. Besides, it may lead to higher prices”.
One of the first consequences of a trade war felt company Tesla. Due to the imposition by China of retaliatory duties on imports from the United States, the company was forced was to raise the price of their cars by 20%. Chinese market is one of the largest markets for the company: just last year, Tesla earned there $ 2 billion. Now Tesla intends to move production to China, where he will open a factory for the manufacture of electric vehicles. It is planned that the Shanghai facility will produce about 500 thousand electric vehicles per year. The plant is scheduled to be operational by 2021. He will be the first Tesla factory outside of the United States.