The trade war started. After US President Donald Trump announced the tax of $ 60 billion in Chinese goods, China has also said that they impose taxes on US $ 3 billion of imported products. Despite this, China has shown considerable restraint in responding to the reaction.
The Ministry of Commerce on Friday said they will impose 100 US duty on US fruits, pork, wine, paired steel pipe. China has said that they will go to the World Trade Organization to challenge the decision to impose the tax on the United States. And they will impose counter tariffs on the company's rules.
However, analysts say that even if US taxes are imposed, it will not have any such impact in the Chinese economy. While the announcement of US President Donald Trump customs showed a wartime attitude, the detailed description of the announcement is not exactly the same. In many cases, actually the threat has not been imposed. But despite this, the tension has increased and the announcement of China's counter-measures has raised concerns.
Professor Eswar Prasad, professor of trade policy at Cornell University, said, "It seems that we are going to engage in a trade war." Now they are out of the arms. At the same time, China also exposed weapons. He further said, "I hope both sides will not impose big trade restrictions." In view of the desire of trump and political wins, this tension will not be tense.
On the other hand, the fear of trade war has broken the market in the whole world. On Friday, the share of important shares in Hong Kong and Shanghai market fell from 2.5 percent to 3 percent to 4 percent. Earlier, the index fell on Wall Street.
According to the United States announcement, after the 30-day mass discussion, certain Chinese products will be imposed on 25 percent duty. During this time the US administration could discuss further with the Chinese government. On this occasion, the lobbyists will try to exclude the customers' products from this list.
Mark Williams, Asia's chief economist at Capital Economics, thinks that the imposition of this tariff will not hurt more than zero 1 percent of China's domestic production. And Zepimergan said that it will cause 2% of China's total export loss. In 2017, the country's total export amount was $ 200 billion. He also said that what would happen is that there will be a slap on China, and nothing else. And on Friday, China announced that they will impose taxes of US $ 15 percent.
However, after analyzing the impact of the US move, China can impose some more on US products. In the second phase, they can impose 25 percent of their products. They said that business organizations and other parties will give feedback after imposing this counter-tax duty. This means that the tariff will be imposed after that date.
But the point is that China is the world's largest lender and the third largest export market can show more intense reactions. Especially China can impose taxes on air and soybeans. Large market of two US products in China. The United States exports soybeans of $ 1,240 million a year. And European Boeing competitor in Boeing market. So these two things can be targeted in China.
And China has recognized political consciousness in the selection of US products. The European Union has recently introduced this awareness. The EU has imposed taxes on bourbon, bluins and motorcycles, which are owned by Republican politicians. And the states that are made in this state have supported Trump in the 2016 General Election. China pays duty on pork. Which comes from Nebraska and the Midwives, both of these states are also supporters of the trump
"I would say that there is enough restraint in China's proposal," said Sang Guo, deputy director of American Studies at Shanghai University's Phunyan. He referred to China's reaction as a "fierce anger".