China and US flags are printed on paper on this illustration made on January 27, 2022.
Data Ruvic Reuters
According to Analysts, Beijing-Ryzyko Intensive Trade War in the USA-China is growing rapidly, after Beijing reacted stronger than many, the latest tariffs of US President Donald Trump.
In the change of tone, China also abandoned the call to negotiate in the case of trade in a weekend statement that condemned the US fees, raising the perspectives of the extended escalation period of tariffs.
“China has undertaken and will continue to take strong funds to secure their sovereignty, security and development interests,” said the Chinese Ministry of Foreign Affairs A statement from Saturday.
Beijing took revenge on Friday fees of 34% for all American goods – Adjusting the latest duties of Trump administration. These appeared at the top 10-15% of China tariffs overlapped in March and Februarywhich focused on agricultural and energy products imported from the USA
“Raising the tariff on all US imports in the same amount as the last Trump tariff shows China's determination to go to the place where the US wants to be,” said Andy Xie, an independent economist based in Shanghai.
As part of wide retaliation, Beijing also applied export curbs Key elements of rare landsforbidden export double use items for a dozen of us entitiesmainly in the defense and aviation industries and put 11 American companies in it “List of unbelievable entities” Subject to them broader restrictions while working in China.
“The aggressive attitude in Beijing signals that the future retaliation will be stronger, causing an escalating spiral and increasing the chances of unconvinced selling in 2025.” A team of analysts from Eurasia Group said in the note.
China's answer will probably cause further rounds of the US tariffs in order to discourage other trading partners from similar movements, said the analysts of the Eurasia group, noticing that “some Trump officials see it as a special time to double China to accelerate the separation of commercial ties.”
The quick response of Beijing appeared in the announcement by Trump by an additional 34% tariffs to China, raising the average weighted US tariff rate to China to as much as 65%, according to Robin Xing, China's chief economist in Morgan Stanley.
This may stop the world -related economy in the world by 1.5 to 2 percentage points this year, estimates Xing, citing slower export and rooted from national deflation.
Negotiations
The shift of Beijing towards a more “aggressive, escalating” position is the nearest agreement to end the trade war between two superpowers “very unlikely”, said economists from Capital Economics.
Until the last Friday, Beijing was considered relatively restrained and measured. Trump also wrote warm comments, praising the Chinese president XI Jinping I He expressed business in organizing a two -sided meeting.
“Abandonment of restraint” in recent retaliation in Beijing probably reflects “reduced hopes for Chinese leaders under a US trade agreement, at least in a short period,” said Gabriel Wildau, managing director at Teneo.
Trump laughed at China's last answer as a panic act. IN Publish the truth on the social media platformHe said: “China played badly, panicked – the only thing they can't afford!” The president said he would consider Lowering tariffs to China If Beijing approves the sale of a short Tiktok video application for American investors.
However, Beijing may not be on board with sales. “National dignity is a key consideration of Beijing about Tikktok, but replacing the Tiktok for relief in newly applied tariffs would wear a unique breeze of China leaders in intimidation,” Wildau said.
Analysts from the Eurasia Group suggested, however, that Beijing still wants a contract and is prepared for negotiations. “Strong, asymmetrical retaliation of the Tit-For-Tat tariff is a preliminary condition for Beijing to come to the negotiating table,” they added.
Without excluding negotiations from the USA, State publication People's Daily In the opinion, he said that Beijing was “fully prepared in all aspects to deal with potential shocks” with lots of politics to defend the IT economy.
The diary of people, which is often used to convey official politics' views, outlined Beijing plans to counteract economic decline by increasing national consumption “with extraordinary strength”, reducing key policy indicators as soon as it is needed and further fiscal relief.
Reducing the perspective of the agreement between Beijing and Washington has tightened the global market market, sending the Hang Seng China Enterprises index – which follows Chinese actions listed in Hong Kong – a decrease by over 13% on Monday, setting it on the worst day since the global financial crisis.
According to LSEG data, the profitability of 10-year government bonds has dropped to 1.634%, while Juan Offshore weakened 0.35% to 7,3212 per dollar.