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In this illustration, on January 27, 2022, China and the United States were printed on paper.
Date of Ruvi | Reuters
According to analysts, the risk of intensive trade warfare is rapidly growing after Beijing replied more severely than many expected that US President Donald Trump’s last tariffs.
Changed in the tone, China also refused calls for trading talks on the weekend that condemned us from levies, raising the prospects of a long tariff escalation.
“China has taken and will continue to take decisive measures to protect its sovereignty, security and development interests,” China’s Foreign Ministry said in China Statement on Saturday.
Beijing on Friday avenged compassion of 34% on all American goods – In accordance with the latest duties of the Trump administration. Those came to the top 10-15% tariffs in China collected in March and Februarywhich was focused on agricultural and energy products that were imported from the US
“Increasing the US imports for the same amount as Trump’s last tariff, demonstrates China’s determination to go all the way where the United States wants to be,” said Andy Si, an independent economist based in Shanghai.
As part of extensive revenge measures, Beijing also posted exports Key elements rare landforbidden exports Double items for a dozen American organizationsBasically in defense and aerospace industry and put another 11 American firms “List of Unreliable Organizations”, exposing them to broader restrictions while working in China.
“Aggressive poses in Beijing that the future retribution will be stronger, highlighting the escalation spiral and raising the chances of an unmanaged interchange in 2025,” the analyst team in Eurosia Group said.
China’s reaction probably offers further rounds of tariffs from the United States, trying to beat similar steps from other trading partners, said Eurosia Group analysts, noting that “some Trump officials see this as a unique time to double China, trying to accelerate the intercourse of commercial ties.”
Beijing Swift Answer appeared on the back of Trump’s announcement of an additional 34% tariffs in China, raising the average US weighted average to 65%, according to Robin Sing, Chinese Chinese Economist in Morgan Stanley.
This can lay the second largest economy in the world by 1.5 to 2 percentage points this year, Xing assessment, citing a slower growth of exports and secured household deflation.
Negotiations on stop
The transition to Beijing to a more “aggressive, escalation” position makes the closest deal to stop the trade war between two superpowers “very unlikely”,-said economists in the capital’s economy.
By last Friday, Beijing’s actions were considered relatively restrained and measuring. Trump also made warm comments that praised Chinese President Xi Jinping and expressed interests in organizing a bilateral meeting.
“Restraint” in the last Beijing measures probably reflects “the reduced hope of Chinese leadership for a trade agreement with the United States, at least in the short term,” Gabriel Widow said in the note.
Trump deviated from China’s last reaction as panic. In A Place on the Social Media Truthsocial PlatformHe said, “China played this wrong, they paniced – the only thing they can’t afford!” The President said he would consider Reduction tariffs on China If Beijing approves the sale of a short video -application Tiktok for US investors.
And yet Beijing cannot be on board with sale. “National dignity is a key consideration of Beijing for a tick, but to exchange a ciking for help from recently imposed tariffs will lead to an unmistakable breath of Chinese executives, which are inferior,” Uidau said.
However, the Eurosia Group analysts have offered Beijing to the transactions and ready to negotiate. “A strong, asymmetrical, tariff pay for the tat-tat is the prerequisite for Beijing to come to the negotiating table,” they added.
Not excluding negotiations from the US, daily that is supported by the state daily In the opinion, the saying that Beijing was “fully prepared in all aspects for processing potential upheavals” with a wide political premises to protect its economy.
Every day, people who are often used to transfer official views on politics, outlined Beijing’s plans to resist economic loss, enhancing the internal consumption of “extraordinary power”, “reducing basic policy rates when it is necessary and further weakening.
Reducing the prospects of the transaction between Beijing and Washington has aggravated the global market by sending the Hang Seng China Enterprisees index – which tracks Chinese stocks listed in Hong Kong – decreasing by 13% on Monday, setting it on its terrible day after the global financial crisis.
According to LSEG, the profitability of 10-year government bonds of China lowered 9 basic points to 1.634%, while the marine yuan weakened 0.35% to 7,3212 per dollar.
