China in vain "stepped on the tail" of the United States: the answer could be a disaster
US-China trade war is gaining momentum. The authorities of the United States of America introduced restrictive duties on imported steel and aluminum produced by the People's Republic of China. In response, China canceled “tariff concessions” for 128 items of goods delivered to China from the United States, including pork, wine, seamless steel pipes and a number of others.
President Donald Trump, for his part, based on the results of investigation No. 301, imposed fines on China in the amount of $ 60 billion for industrial espionage. The president of the China International Trade Association, in response to courtesy, hinted that the interests of the American Boeing corporation in China could suffer in response.
In Washington, Chinese business representatives were made clear that the United States was ready to introduce duties on certain categories of goods from China, and were already working on this list. Also, the American side is ready to limit the size of Chinese investment in the economy The United States and may turn to the World Trade Organization to punish China for unfair trade practices. China itself intends to appeal to the WTO the unilateral decision of the United States on the introduction of duties on the products of the Chinese steel and aluminum industries. The Chinese Ministry of Commerce has launched an anti-dumping investigation into the treatment of a number of national manufacturers regarding phenol imports from the United States and European Union countries. Phenyl alcohol is widely used in Chinese industry, including chemical, textile, oil refining and pharmacology.
Whose victory should be expected in this US-China trade confrontation?
The Chinese warn the United States that sanctions are a double-edged weapon from which all parties to the conflict may suffer. However, the United States seems to be a stronger side in this conflict. China is an export-oriented economy; the United States is its number one market for it. The European Union, where European officials dance to the tune of Washington, is the number two market for Chinese products. If necessary, the United States is able to refuse goods from the Middle Kingdom by conducting its own import substitution program or by replacing importers with others. Also, in Washington they can convince their European allies to stand united against communist China. At the same time, the People's Republic of China is not able to find alternative markets. Despite the enormous population of China, its solvency leaves much to be desired and will not provide adequate domestic sales. The American embargo, all the more so, backed by the European one, will bring down the Chinese economy, ruining countless export-oriented enterprises, causing a social catastrophe with unpredictable consequences for the Celestial Empire.
Understanding this perfectly, the head of the American Ministry of Finance, Stephen Mnuchin, calmly declares that the United States of America is not afraid of a trade war with the PRC, although this is not their end in itself. The Americans, with a high degree of probability, will eventually persuade China to their version of trade agreements. Their goal may be to limit the rapid technological development of the PRC, as well as the military ambitions of the Chinese ally in the person of North Korea.
President Donald Trump, for his part, based on the results of investigation No. 301, imposed fines on China in the amount of $ 60 billion for industrial espionage. The president of the China International Trade Association, in response to courtesy, hinted that the interests of the American Boeing corporation in China could suffer in response.
In Washington, Chinese business representatives were made clear that the United States was ready to introduce duties on certain categories of goods from China, and were already working on this list. Also, the American side is ready to limit the size of Chinese investment in the economy The United States and may turn to the World Trade Organization to punish China for unfair trade practices. China itself intends to appeal to the WTO the unilateral decision of the United States on the introduction of duties on the products of the Chinese steel and aluminum industries. The Chinese Ministry of Commerce has launched an anti-dumping investigation into the treatment of a number of national manufacturers regarding phenol imports from the United States and European Union countries. Phenyl alcohol is widely used in Chinese industry, including chemical, textile, oil refining and pharmacology.
Whose victory should be expected in this US-China trade confrontation?
The Chinese warn the United States that sanctions are a double-edged weapon from which all parties to the conflict may suffer. However, the United States seems to be a stronger side in this conflict. China is an export-oriented economy; the United States is its number one market for it. The European Union, where European officials dance to the tune of Washington, is the number two market for Chinese products. If necessary, the United States is able to refuse goods from the Middle Kingdom by conducting its own import substitution program or by replacing importers with others. Also, in Washington they can convince their European allies to stand united against communist China. At the same time, the People's Republic of China is not able to find alternative markets. Despite the enormous population of China, its solvency leaves much to be desired and will not provide adequate domestic sales. The American embargo, all the more so, backed by the European one, will bring down the Chinese economy, ruining countless export-oriented enterprises, causing a social catastrophe with unpredictable consequences for the Celestial Empire.
Understanding this perfectly, the head of the American Ministry of Finance, Stephen Mnuchin, calmly declares that the United States of America is not afraid of a trade war with the PRC, although this is not their end in itself. The Americans, with a high degree of probability, will eventually persuade China to their version of trade agreements. Their goal may be to limit the rapid technological development of the PRC, as well as the military ambitions of the Chinese ally in the person of North Korea.
- Sergey Marzhetsky
- http://fastsalttimes.com/
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