China trade tensions increase

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New Chinese tariffs are to apply to imports of all scrap commodities from the United States, including ferrous and non-ferrous metal scrap, recovered paper and plastic scrap, and to various other goods categories.

China's refined products exports last month were 4.57 million tonnes, almost flat from a year earlier.

They followed the first round of tariffs in March 2018 on imports of Chinese steel and aluminium, which prompted a like-for-like tariff on the US. The U.S. Trade Representative's Office is looking into the possibility of a ten percent tariff on another $200 billion in Chinese goods.

The now proposed charge is 10%, but it could increase to 25% once a consultation period ends.

China will respond in kind: "China will impose a 25 percent tariff on $16 billion of goods and commodity imports from the United States on Aug 23, a necessary countermeasure to defend its legitimate interests and multilateral trading system", China Daily reports based on a Ministry of Commerce announcement.

Affected goods include AC and DC motors, voltage-current regulators, steam turbines, railway cars, antennas and integrated circuits.

China and the United States continue to impose import duties on each other, enacting a trade war that risks impacting global production in the long run.

Shipping consultancy Drewry have predicted the container shipping industry could lose as much as 1.8 million TEU, a contraction in global trade of 1%. But the USA imports far more from China than it exports.

The trade war between the world's two biggest economies has forced many multinational companies to reschedule purchases and rethink where they buy materials and parts to try to dodge or blunt the effects of tit-for-tat tariffs between Washington and Beijing.

These commodities, worth a combined $60 billion, are subject to extra tariffs at four different rates from 5% to 25%.

The additional tariff on US LNG could have a chilling effect on US investment and on shale developers' decisions on whether or not to sign more LNG supply contracts with China. The Chinese FDA (CFDA) proposed the provision of conditional approval for the urgently needed therapies and orphan drugs, along with market access benefits for new drugs. China immediately retaliated with similar tariffs on USA goods, including soybeans, pork and poultry, which were created to hurt Trump voters in rural America.

"Trump told the executives that Chinese President Xi Jinping's "One Belt One Road Initiative, ' China's economic plan that has the potential to disrupt trade worldwide, was 'insulting" and that he didn't want it, according to a person in the room".

China today does not directly import LNG from the US. They criticize Trump's tactics but share USA complaints about Chinese industrial policy and market barriers. Around afternoon, the benchmark Shanghai Composite Index surged 1.8%, or 49 points, to 2,793.04, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.7%, or 39.16 points, to 1,505.86.

Any such agreement would still need to be reconciled with Canada, the third party in the original 1994 North American trade accord.

Trump also is moving forward with plans to tax a further US$200b in Chinese products as soon as September and has threatened to eventually impose tariffs on all Chinese imports, which totaled US$505b a year ago, unless China capitulates.