China replied to the new US rates announcing, Wednesday (9), 84% supplement to US products. The measure is valid from Thursday (10) and represents a new chapter of the commercial war between the two main global economies.
China replied to the new US rates announcing, Wednesday (9), 84% supplement to US products. The measure is valid from Thursday (10) and represents a new chapter of the commercial war between the two main global economies.
“Additional customs rates (…) will be raised from 34% to 84% from Thursday at 12:01” for local time (1h01 Brasilia), said the Chinese Ministry of Commerce in a note.
The answer came a few hours after the United States imposed new rates in almost 60 countries. In the case of China, the measure represents an accumulated rate of 104%. “The U.S. tariff climbing against China accumulates errors in errors and seriously violates the legitimate rights and interests of China,” said the ministry. “The multilateral commercial system based on standards,” he added.
China wants to protect its economy from 104% American rates by stimulating consumption and investments in crucial sectors. However, analysts say that the country remains very vulnerable to the reflection of the measures announced by Donald Trump.
Beijing has promised to fight “until the end” against the Washington tariff campaign. Tuesday (8), Prime Minister Li Qiang said that China “fully” in the resistance of its economic growth.
In practice, the Chinese economy has to face problems even before the US rates, with the high unemployment rate between young people and a persistent real estate crisis that brakes consumption.
“The Chinese economy is much weaker than it was during Trump’s first term and cannot really absorb the impact of additional rates,” says Henry Gao, a commercial law at the University of Singapore.
Last year, foreign trade was one of the few positive indicators of the Chinese economy, with the United States as the main destination for Chinese products.
Exports from the Asian country to the United States have reached almost $ 440 billion (R $ 2.6 trillion) in 2024, according to the American Trade Department, much above the opposite direction of $ 114.6 billion (R $ 688 billion).
Most exports are represented by electronic products, machinery and consumer goods (fabrics, furniture, toys).
One of the reasons why China can face problems is that “some products are designed specifically for US and European markets”, says Tang Yao of the Guenghua Business School of Beijing.
“Opportunity”
For the Beijing regime, the planned crisis should not be considered totally negative. The popular diary, an official agency of the Chinese Communist Party, has recently described American rates as “strategic opportunities”, in particular to transform consumption into the new engine of Chinese growth rather than exports.
China aims to “use external structural pressures as a catalyst to implement long planned reforms”, explains Lizzi Lee, an expert in Asia Policy Institute, an organization based in the United States.
In addition to new US products, Beijing has also announced restrictions on rare exports of land, including some used to capture magnetic images and electronic consumption products.
Another action plan could be the strengthening of financial support to the private sector, since entrepreneurs have a good relationship with the president Xi Jinping, analyzes the Economist of Banco Fondo Raymond Yeung.
The Chinese government supports a wider strategic autonomy of the country in the technological sector to make it less dependent on geopolitical oscillations. Therefore, it supports crucial sectors, such as artificial intelligence (AI) and semiconductors.
“But this does not mean that the Chinese economy can easily overcome the prohibitive overcuting effects,” says Frederic Neumann, economist for HSBC Asia.
For the analyst, Beijing could compensate for the fall of the American demand in various ways, such as the resurgence programs of household appliances or incentives to encourage consumers to buy Chinese products from electric car TV devices.
“By creating demand and commercial opportunities for Chinese Asian and European partners, the country could help save what remains of the liberal commercial order of the world,” says Neumann. China has “the opportunity to assume the world economic order, but this can only happen if the internal demand increases and if the Chinese leadership fills the void left by the United States”, he adds.
(With AFP)
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
