China counter-attacks and prepares for protracted conflict and uncertain outcome

Beijing ruled out the possibility of devaluing the yuan or selling US debt – the other two options that flew over the environment – and decided to raise royalties from 10% to 25% to 5,140 US products worth 60 000 million US dollars.

In a statement posted on the Internet, the Ministry of Finance has listed four categories of agencies involved: the first, consisting of cotton, machinery and cereals, is the sector punished by the highest royalties, a painful action for The President Donald Trump, who strikes traditionally Republican states in the 2020 electoral prelude, will be taxed at 20%, aircraft parts, optical instruments and some types of furniture, and the third, flour of corn and wine, with 10%. The fourth, machinery for health and some chemicals, remained at 5%.

This is a response to "unilateralism and American protectionism is read in the text leaked by the ministry. "China expects the United States to return to the right track of bilateral trade negotiations, so as to reach a mutually beneficial agreement, on the basis of equality and mutual respect," the statement added.

The decision was made after the US government increased taxes on imports from the Asian giant by 10 to 25 percent to a value of 200,000 million US dollars. It seemed then that the mismatch between the two major economies of the world was at its height. final sections. A few hours after the start of the eleventh series of contacts in Washington, this resolution left China puzzled.

Although the authorities of both sides did not openly discuss the causes of the resumption of the conflict, Reuters reported on anonymous sources that China has amended seven of the agreements already concluded regarding the amendment. forced technology transfer, market opening and currency manipulation, among others. The implementation of such agreements would have resulted in a strong state recession in the threads of the national economy and a breakdown of the Communist Party's (CCP) power model, which this year celebrates 70 years of power. China does not see any negotiation in the agreements and thus promises a long struggle.

"China will act not only as a master of kung fu in response to American tricks, but also as an experienced boxer who can carry a death blow in the end," Xinhua told Xinhua. Trade. South China Morning Post, newspaper. "China has not only the determination and the capacity, but also the will to lead a prolonged war," he said.

"Those who make the decisions already fully understand the structure of the United States in trade negotiations," he said. The former head and CCP member suggested that the measures could go a lot further and target tourism, finance and even Boeing, with whom negotiations were initiated for the purchase of 100 aircraft. 39 worth $ 10 billion.

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China is sure of the soundness of its economy and shows no signs of sanction. Despite all the predictions, the first year of the trade war did not cause the damage that specialists foresaw and the first quarter of the year rose 6.4% year on year. # 39; other. Although it is the lowest rate of recent decades, it maintains the levels of the previous measurement and shows stability in times of turbulence. In addition, exports have also increased by 4.3% so far in 2019. China does not depend so much on the United States anymore. as in previous decades: domestic consumption and its alliance with other countries – its Gaza Strip proposal and itineraries constituting membership at different levels across 130 countries – are preventing the giant from entering Europe. collapse.

On the other hand, the battery of measures implemented in recent months, such as a reduction in taxes, incentives for businesses and a flood of public investment, has managed to limit the damage. "After the trade war, the purchases suffered a lot, even though we tried to be positive, it was not the right time and we even studied the possibility of moving some of the factories," said Charles Zhang, president Shanghai Baolong Automotive Corporation, at a press conference in Shanghai, which this newspaper attended.

For the moment, each power remains in its trench. The 12th meeting is expected to take place between Trump and Xi at the G-20 summit in late June in Japan, nearly seven months after the merger with Buenos Aires. The volatile nature of the relationship suggests a distant solution.