Wang Jun, Chief Economist of Zhongyuan Bank, analyzed in an interview that at the qualitative level, China can target goods that are more likely to hurt the United States, such as agricultural products, airplanes, and automobiles, which can affect the Republican Party’s mid-term election votes, orAmerican products that are highly dependent on China.
Before the start of the Sino-US trade war, the air-cry prices were still increasing. The total amount of Chinese goods that the United States intends to impose tariffs on has exceeded China’s annual imports of American goods.According to expert analysis, China can make up for the quantitative shortage by imposing higher tax rates and embarrassing American-funded enterprises in China.
U.S. President Trump threatened on Monday to impose a 10% tariff on an additional US$200 billion (approximately S$271 billion) of Chinese goods in response to China's announcement on the 16th that it would retaliate against the United States for imposing tariffs on US$50 billion of Chinese goods.countermeasures.
China's Ministry of Commerce immediately responded on Tuesday morning that China will have to take comprehensive measures combining quantity and quality to make a strong countermeasure.
According to U.S. data, China imported $130 billion worth of U.S. goods last year, while the U.S. imported $505 billion in Chinese goods.
If only the volume of imports is considered, even if China imposes additional tariffs on all US imports, it will be difficult to equal the US$200 billion of Chinese imports that the US just announced in terms of volume.
Wang Jun, Chief Economist of Zhongyuan Bank, analyzed in an interview with Lianhe Zaobao that on the qualitative level, China can target goods that are more likely to hurt the United States, such as agricultural products, airplanes, and automobiles, which can affect the votes of the Republican Party in the mid-term elections., or American products that are highly dependent on China.He said: To hit a snake, you need to hit seven inches.
Wang Yong, a professor at the School of International Relations at Peking University and director of the International Political Economy Research Center, pointed out in an interview that China can also impose a higher tax rate than the United States. For example, if the United States imposes an additional 10%, China will impose a 20% tariff.
Trivium, a consulting firm, wrote an analysis that China can also use non-tariff means to deal with the United States, such as delaying the entry of US imports through lengthy customs clearance inspections, disrupting the production of US companies in China, and increasing penalties.The strength and frequency of US investment, the extension of the time for US investment to apply for licenses and other approvals, and restrictions on American tourists visiting China.
Parker, vice president of the US-China Business Council, told Reuters that the committee has received news that the Chinese government has proposed to some Chinese-funded companies to transfer contracts originally given to US-funded companies to foreign or other Chinese-funded companies in Europe or Japan.
Wang Yong: China has made many concessions
China's previously announced countermeasures are all on par with the United States and will not show weakness to the United States.The United States has continued to increase threats, and China's response has become increasingly blunt.The Ministry of Commerce of China directly said yesterday that the United States' actions have intensified, which is an act of extreme pressure and blackmail.
Wang Yong pointed out that China's goal is still clear and unchanged, and the announcement of countermeasures is just to promote talks, but the goal of the United States is still unclear.
He pointed out that China has made many concessions so far, including promising to purchase US$70 billion in US agricultural and energy imports, significantly reducing tariffs on US automobiles, pharmaceuticals and other products, and flexibly clarifying that the Made in China 2025 plan is guiding rather than mandatoryThese should be enough to serve the needs of the US mid-term elections, allowing Trump to announce to American voters that he has won the trade war with China.
According to Wang Yong's analysis, the United States is still not giving up, possibly because it is driven by economic nationalism and intends to impose tariffs to promote the decoupling of the Chinese and American economies.
