Chinese Economics Thread

[Hendrik_2000]

China will retaliate as we all suspected . No backing down Here it is

Snap take: China lashes back at US with new tariffs

Donald Trump stepped up the trade war earlier this month by announcing new tariffs Credit: SHAWN THEW/EPA-EFE/REX
Jerome Powell may need to re-draft that speech.

China has announced it will introduce a 25pc levy on automotives and retaliatory tariffs on $75bn of US goods, in the latest escalation of the trade war between the world’s two biggest economies.

Levies will be introduced in two batches. The first will kick in at the start of September, coinciding with an escalation in US charges announced by President Donald Trump earlier this month. In mid-December, when all the US’s planned tariffs will be in place, China will begin tariffing US autos at 25pc.

The announcement, made by China’s Ministry of Finance, sent a shockwave through markets — pushing down equities and trade-linked commodity prices, and knocking emerging market currencies.

European markets shed their gains immediately as investors fled from risk.

Oil and copper prices tumble as China prepares new tariffs
Commodity prices exposed to a trade war are starting to feel the pain. The Chinese government has announced it will introduce 5pc–10pc tariffs on some US goods from the start of next month, and bring in a 25pc tariffs on US automotives from mid-December.

 

[Jura The idiot]

China will retaliate as we all suspected . No backing down Here it is

Snap take: China lashes back at US with new tariffs

Donald Trump stepped up the trade war earlier this month by announcing new tariffs Credit: SHAWN THEW/EPA-EFE/REX
Jerome Powell may need to re-draft that speech.

China has announced it will introduce a 25pc levy on automotives and retaliatory tariffs on $75bn of US goods, in the latest escalation of the trade war between the world’s two biggest economies.

Levies will be introduced in two batches. The first will kick in at the start of September, coinciding with an escalation in US charges announced by President Donald Trump earlier this month. In mid-December, when all the US’s planned tariffs will be in place, China will begin tariffing US autos at 25pc.

The announcement, made by China’s Ministry of Finance, sent a shockwave through markets — pushing down equities and trade-linked commodity prices, and knocking emerging market currencies.

European markets shed their gains immediately as investors fled from risk.

Oil and copper prices tumble as China prepares new tariffs
Commodity prices exposed to a trade war are starting to feel the pain. The Chinese government has announced it will introduce 5pc–10pc tariffs on some US goods from the start of next month, and bring in a 25pc tariffs on US automotives from mid-December.

Hendrik2k was faster here

anyway
China retaliates with tariffs on $75 billion of US goods

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The US-China trade war ratcheted up yet again on Friday, with Beijing unveiling a new round of retaliatory tariffs on about $75 billion

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.
China will place tariffs of 5% or 10% on US imports starting on September 1st, according to a statement posted by China's Finance Ministry.
The Ministry also announced plans to resume tariffs on US imports of automobiles and automobile parts. The tariffs would be 25% or 5%, and would take effect on December 15th.
Last week, China said it would take countermeasures after the United States announced it would impose 10% tariffs on Chinese imports worth $300 billion.
The United States

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n of about half of those tariffs, which will cover several categories of Chinese-made consumer goods, until December. They had been due to take effect in September.
The move comes amid indications the ongoing trade war is having an impact on the world's two largest economies.

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— an important indicator for the country's economy — grew just 4.8% in July compared to a year earlier, according to China's National Bureau of Statistics. That's the worst growth for that sector in 17 years.
American factories are also contracting for the first time in a decade and red lights are flashing in the bond market, where t

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Such inversions, where the 10-year Treasury yield dips below the two-year Treasury rate, are historic predictors of a coming recession.

 

[Jura The idiot]

now I read
China to impose additional tariffs on U.S. imports worth 75 bln USD
Xinhua| 2019-08-23 22:36:26

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China will impose additional tariffs on U.S. imports worth about 75 billion U.S. dollars in response to the newly announced U.S. tariff hikes on Chinese goods, the Customs Tariff Commission of the State Council announced Friday.

Based on laws and approved by the State Council, a total of 5,078 U.S. products, including crude oil, soybeans, peanuts, seafood, chicken, fruit and vegetables, and animal fur, will be subject to additional tariffs of 10 percent or 5 percent.

The tariff hikes will be implemented in two batches and take effect at 12:01 p.m. Beijing time on Sept. 1 and at 12:01 p.m. on Dec. 15, respectively, the commission said in a statement.

China's imposition of additional tariffs is a forced response to U.S. unilateralism and trade protectionism, the statement said.

China reiterates once again that cooperation is the only correct choice for China and the United States, and that only a win-win situation will lead to a better future.

"We hope China and the United States will resolve differences in a manner acceptable to both sides on the premise of mutual respect, equality, good faith, and consistency of words and deeds," the statement said.

The two sides are expected to actively build a new balanced, inclusive and win-win Sino-U.S. economic and trade order, jointly safeguard, reform and improve the multilateral trading system, and promote win-win cooperation with other countries, the statement added.

The U.S. government announced on Aug. 15 that it will impose additional tariffs of 10 percent on Chinese goods worth about 300 billion dollars, effective on Sept. 1 and Dec. 15, respectively, in two batches.

The U.S. move has led to a further escalation of bilateral trade frictions, greatly damaging the interests of China, the United States and other countries, and also gravely threatening the multilateral trading system and free trade principles, the statement said.

According to a separate announcement made by the commission Friday, China will resume imposing additional tariffs of 25 percent or 5 percent on American-made vehicles and auto parts starting from 12:01 p.m. Dec. 15.

The commission will continue with the work of exempting certain items from additional tariffs.

 

[Gatekeeper]

China will retaliate as we all suspected . No backing down Here it is

Snap take: China lashes back at US with new tariffs

Donald Trump stepped up the trade war earlier this month by announcing new tariffs Credit: SHAWN THEW/EPA-EFE/REX
Jerome Powell may need to re-draft that speech.

China has announced it will introduce a 25pc levy on automotives and retaliatory tariffs on $75bn of US goods, in the latest escalation of the trade war between the world’s two biggest economies.

Levies will be introduced in two batches. The first will kick in at the start of September, coinciding with an escalation in US charges announced by President Donald Trump earlier this month. In mid-December, when all the US’s planned tariffs will be in place, China will begin tariffing US autos at 25pc.

The announcement, made by China’s Ministry of Finance, sent a shockwave through markets — pushing down equities and trade-linked commodity prices, and knocking emerging market currencies.

European markets shed their gains immediately as investors fled from risk.

Oil and copper prices tumble as China prepares new tariffs
Commodity prices exposed to a trade war are starting to feel the pain. The Chinese government has announced it will introduce 5pc–10pc tariffs on some US goods from the start of next month, and bring in a 25pc tariffs on US automotives from mid-December.

Isn't it funny how we don't hear Trump boosting about "Tariff man" and "Trade war are easy to win"!

 

[Gatekeeper]

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Righteous anger from the US will not win the tech war with China
Washington’s tech sanctions will not halt Beijing’s industrial advance

© Ingram Pinn/Financial Times

August 22, 2019 8:06 am by

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Political debate is often couched in terms of principle. But the strongest argument against the US fighting a technology war with China has little to do with right and wrong. It is simply that the US may well lose.

Washington, to be sure, has cause to feel aggrieved. It has signed several bilateral agreements with Beijing since the early 1990s to protect American intellectual property in China, only for each one to be violated in spectacular fashion by Chinese actors.

For decades, Chinese shopping malls did a roaring trade in fake Nike shoes, counterfeit Apple iPhones and other ripped-off US brands, while commercial and trade secrets were also stolen. The Commission on the Theft of American Intellectual Property estimated that in 2015 alone, US losses were worth up to $540bn — more than the entire US trade deficit with China.


But righteous indignation is not, by itself, a winning strategy. US President Donald Trump boasted this month that “the longer the trade war goes on, the weaker China gets and the stronger we get”. But others see the opposite dynamic in play: mounting losses for leading American corporations as the US and Chinese economies decouple after nearly 40 years of engagement.

The tech sanctions the US has imposed on China — restrictions on US exports to more than 140 Chinese companies on Washington’s “

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” — were framed as punishment for wrongdoing. Beijing sees them as aggression born of fear that China will become the world’s technological leader.

A patriotic backlash in China has already begun. Cisco, the US networking equipment maker, is sounding the alarm. Chief executive Chuck Robbins said this month that Chinese state-owned companies are shutting their doors in Cisco’s face. “We’re being uninvited to bid,” he said. “We are not even being allowed to participate anymore.”

Qualcomm, a US chipmaker that gains 65 per cent of its revenues from China, faces similar headwinds. The company warned this month that revenues in the 2019 financial year will fall to a seven-year low, largely because of dwindling Chinese demand. Rival US chip companies Micron, Qorvo and Broadcom also derive about half of their global revenues from China.

“We know that US technology is often the best and we really do want to use it,” a senior Chinese tech executive said privately. “But when the supply from the US is so unreliable and so political, we are forced to find alternatives.”

These sentiments are reinforced by Chinese consumers. Huawei, the world’s largest telecoms equipment company, has seen its smartphone sales soar at home following Washington’s decision to blacklist the company in May. Meanwhile, Apple’s

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in China have slumped.

From a Chinese perspective, the US approach appears akin to the “ku rou ji”, or “bitter flesh strategy” — wounding yourself to gain advantage over an adversary. In Chinese folklore, such a desperate ruse works only if you end up inflicting greater injury on your rival.

So far, China is absorbing the pain. Its official figures show the

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;with the US has swollen this year in spite of tit-for-tat trade tariffs. Some US tech companies, including HP, Dell, Microsoft, Amazon and Apple, are considering shifting some production out of China. But neither this, nor the US blacklist has been able to arrest China’s tech advance.

Indeed, in several key areas, Chinese companies are already ahead. High-speed rail, high-voltage transmission lines, renewables, new energy vehicles, digital payments and 5G telecoms are just some of the industries in which Chinese companies are widely regarded as leading their US counterparts.

Opinions are divided on whether the US or China has the more vibrant start-up culture. A study by Chinese institutions in 2017 found that the country had

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;— or start-ups valued at more than $1bn — compared with 132 for the US. But Credit Suisse

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that the US had 156 unicorns against China’s 93 — and China’s were of inferior quality.

Almost all sources agree that China is catching up fast — even in foundational disciplines such as artificial intelligence. “Despite China’s bold AI initiative, the United States leads in absolute terms,” the Information Technology and Innovation Foundation said this week. “This order could change in coming years as China appears to be making more rapid progress than either the United States or the European Union,” it added.

With dominance at stake, neither side appears ready to cede an inch. Dan Wang, a Beijing-based analyst at Gavekal, a research company, says that more Chinese companies are likely to be blacklisted by the US. Further steps could include limits on the export of broad categories of US-made technologies, he added.

Angry remarks by Mr Trump this week underline the risks of escalation. “Somebody had to take China on,” he said. “And it’s about time, whether it’s good for our country or bad for our country short-term.”

The problem for Washington is that such steps might indeed be bad for America — in the short term and in the longer term as well. US companies and their affiliates operating in China sell nine times more than their Chinese counterparts sell in the US, according to Gavekal. As the superpowers decouple, the US has more to lose


Looks like the wheels coming off in Trump's trade war. China's economy is doing fine, thank you.

 

[Jura The idiot]

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·

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Replying to

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... I will be responding to China’s Tariffs this afternoon. ...

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[zgx09t]

China will retaliate as we all suspected . No backing down Here it is

Snap take: China lashes back at US with new tariffs

Donald Trump stepped up the trade war earlier this month by announcing new tariffs Credit: SHAWN THEW/EPA-EFE/REX
Jerome Powell may need to re-draft that speech.

China has announced it will introduce a 25pc levy on automotives and retaliatory tariffs on $75bn of US goods, in the latest escalation of the trade war between the world’s two biggest economies.

Levies will be introduced in two batches. The first will kick in at the start of September, coinciding with an escalation in US charges announced by President Donald Trump earlier this month. In mid-December, when all the US’s planned tariffs will be in place, China will begin tariffing US autos at 25pc.

The announcement, made by China’s Ministry of Finance, sent a shockwave through markets — pushing down equities and trade-linked commodity prices, and knocking emerging market currencies.

European markets shed their gains immediately as investors fled from risk.

Oil and copper prices tumble as China prepares new tariffs
Commodity prices exposed to a trade war are starting to feel the pain. The Chinese government has announced it will introduce 5pc–10pc tariffs on some US goods from the start of next month, and bring in a 25pc tariffs on US automotives from mid-December.

Soon will come the China's own unreliable list in the escalation ladder as Trump will predictably hyperventilate over China's current counter actions. Then sanctions over Taiwan arms sales. China will just pick one by one until 2020 is over.
He just hasn't realized he is forced to chew more than he thinks he signed up for when he started all this.
"Doing great with China and other Trade Deal", my foot.

 

[manqiangrexue]

Trump losing so bad he's screaming at the Chess board and all the pieces! He's actually practicing "Don't hate the player; hate the game" right now... except he's hating everything LOL

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Trump news: President explodes in astonishing attack on Federal Reserve and orders US companies to cease trading with China 'immediately'
Joe Sommerlad, Chris Riotta

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•August 23, 2019

 

[localizer]

cnbc.com/2019/08/23/trump-will-raise-tariff-rates-on-chinese-goods-in-response-to-trade-war-retaliation.html


Trump will raise tariff rates on Chinese goods in response to trade war retaliation

• President Donald Trump said the U.S. will hike tariffs on most imports from China as his trade war with Beijing escalates.
• The U.S. will raise duties on $250 billion in Chinese goods to 30% from 25%, and increase tariffs on another $300 billion in products to 15% from 10%.
• Earlier, China announced new tariffs on $75 billion in U.S. goods — and Trump ordered U.S. companies to find an “alternative” to operating in China.

 

[styx]

Thank you Mr Trump. You're in recession now, not china. America lost the trade war today. It seems this guy want to be a sort of dictator