Commercial tensions between the US and China: the countermeasures of the dragon

Commercial tensions between the two main world economies, USA e China intensify. From todayBeijing will begin to impose rates on Some US agricultural products as a retaliation against the latest increase in duties decided by the President Donald Trump.

Trump recently increased the rate to 20% on all Chinese products, after an initial duty of 10% introduced in February. In response, China has announced additional duties of 10% e 15% on various American agricultural products.

The most affected products

Among the assets subject to higher duties (15%) there are poultry, wheat, corn and cotton, while the duties on soy, sorghum, pig and cow in fish products, fruit, vegetables and dairy products remain at the 10%. According to analysts, these measures aim to hit Trump’s electoral base, however maintaining margins for any commercial negotiations.

The Chinese economy, however, faces internal challenges, such as the weakness of consumption the real estate debt crisis and the high youth unemployment.

Beijing’s answer

It is not the first time that Beijing responds firmly. China has inserted 15 US companies his Export Control List and imposed duties on coal (15%), liquefied natural gas (15%) and crude oil (10%). Although China is the world’s largest coal importer, it receives most of the supplies from Indonesia, Russia, Australia and Mongolia, minimizing the impact of US measures.

In addition, China has imposed rates on agricultural machines, pick-ups and some large-displacement cars, in an attempt to support the internal industry and strengthen food safety.

Google under investigation

In addition to the duties, the Chinese authorities have launched an antimopoly investigation on Google whose search engine has been blocked in China since 2010. In addition, in February, China added the PVH, owner of the brands to the list of “unreliable entities” Calvin Klein and Tommy Hilfiger complicating the commercial operations of these companies in the country.