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A representational image showing US and Chinese flags at an event. — AFP/File
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BEIJING: China has a number of powers that they can select the US President Donald Trump’s decision to impose an additional 10 % of the tax on Beijing Oragian goods entering the country.
China, as analysts, has many options if it wants to respond to fresh US taxes, including revenge taxes on US goods such as US goods to control the raw minerals needed for US manufacturing.
President Trump announced additional rates on Chinese products, which promoted stake in a trade confrontation between global superpowers that began eight years ago in its first term.
President Trump announced additional rates on Chinese products, which promoted stake in a trade confrontation between global superpowers that began eight years ago in its first term.
Beijing in response warned that there was a “no winner” in the trade war and that it still vowed to retaliate.
The news that Canada and Mexico have agreed to an agreement with Trump to delay their luggage 25 % of revenue on their goods, followed by their announcement that they with China to try an agreement ”probably next next Will talk “within 24 hours.
But, since the risk of new measures is being hanging on Beijing, the eyes are on the fact that the response has been raised by the officials there.
Its economy is still struggling with slow consumption and gradual growth, observers expect China to keep its powder dry right now – at least that is another period of revenue that has more damage Can
UBS Bank analysts wrote in a note, “We expect China not to go to retaliation immediately after increasing the 10 Tare tariff, but will keep the door to negotiation and cooperation open.”
“We do not expect China to follow the same strategy, as in the first period of tariffs in 2018-19.”
According to US data, bilateral trade in 2024 was more than $ 530 billion, with more than $ 400 billion exports to the United States. It was second after Mexico.
But the commercial imbalance-which was $ 270.4 billion in January to November last year-has long increased the temples in Washington.
Crackdown on Fantinel Related Exports
In the First Trade War, US major demands were more accessible to Chinese markets, widespread reforms in the business playground that like Chinese firms, and looted heavy state control.
This time, China has also been called around China to crack down on Mexico about the exports of chemical components that are used to make artificial opioid fentine, which in a year’s tens of thousands Are responsible for the deaths.
After a long, tough negotiation during Trump’s first term, the two agreed that the “Phase One” agreement was known.
Beijing was quick to retaliate at the stand -off – designed to damage Trump’s voting base in rural US.
It also imposed sanctions on the export of extraordinary land metals, of which China dominates global supply and on which the United States relies heavily.
And if a new trade war increases, “measures may include prices, export controls on US manufacturing, export control, market access to US firms in China is limited, or yuan deprivation”, ” Harry Murphy Cruz, China’s head and Australian economics told AFP, Moody’s analysis.
But he added that Beijing could learn its lesson from the first stand -off.
Murphy Cruz said, “In the first term of Trump, no one benefited the Tight for Tate Trade War. It made trade more expensive and hindered development in both countries.”
‘Catalist for more prices’
For now, analysts believe the latest steps will not be cut too hard.
“10 % tariff is not a major trauma for China’s economy,” Zhang Xi, of the Pin Point Asset Administration, said in a note.
He added, “This year, China’s macro -outlook is unlikely to change the market expectations, which is already in more taxes than the United States.”
And this can allow China to keep its powder dry, when the first wave of Trump’s prices is a major exhibition.
The US president has ordered a deeper review of Chinese trade methods, the results of which are due to April 1st.
Murphy Cruz emphasized the plans to shift Beijing, saying, “It can act as a” catalyst for more taxes “.
“If the United States later imposed extra prices later, this strategy could change without retaliation,” said a UBS economist.
“In such a case, we believe that China can take response, on a target -based and prevention way, imposing revenue on selected agricultural products, auto parts, energy,” he said.
Experts added that China can also reduce the value of its currency, which increases its export competition.
Trump’s flag talks with Beijing give both sides an opportunity to withdraw from the brink of a trade war that can carry hundreds of billions of goods.
Murphy Cruz said, “China wants to overcome tension.
“This time, China’s economy is in a very weak position,” Cruz added.
