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China has warned the United States not to threaten the global economy with its trade policy. The collection of tariffs will affect supply and value chains worldwide, said Thursday the spokesman of the Chinese Ministry of Commerce, Gao Feng. "To put it simply, the United States is opening fire to the whole world, including itself." But China will not be discouraged by threats and blackmail to defend free trade and the multilateral system. If the United States, as announced, raise tariffs on goods worth $ 34 billion from the Middle Kingdom as of Friday, China will react immediately with tariffs on US goods . China will not give the first blow. The People's Republic does not want a trade war.
Rates announced by US President Donald Trump are applicable from Friday noon (local time, 06.01 CEST). An escalation of the conflict is to be feared, as Trump threatened to take further action if China in turn had to lay charges. Chinese goods worth $ 450 billion are at stake. Despite the clashes, China does not expect restrictions on foreign trade in the second half. However, if the dispute were to lead to a trade war, investors fear a blow to Chinese exports and the economy. Analysts polled by Reuters expect the growth of the People's Republic to drop slightly to 6.7% in the second quarter. Economic performance data is expected to be released on July 16. Stock markets in China collapsed on Thursday. Investors are also nervous about weeks of devaluation of the yuan in local currency
The World Trade Organization (WTO) warned that trade barriers threaten the recovery of the global economy. The first effects can already be observed. Among other things, because of the trade dispute, the International Monetary Fund fears growth problems for Germany. "External imbalances are important," says the latest IMF report. Businesses also sound the alarm. "Of course, we worry if this escalates," said Airbus CEO Tom Enders,
.
The EU between the Fronts
Trump leads a campaign against the huge US trade deficit on several fronts. In addition to China, the focus was mainly on the European Union. The EU threatens Trump with tariffs on car imports. Also with the neighbors Canada and Mexico, the United States is in the Handelsclinch. Canada imposed retaliatory tariffs similar to those of the EU after the United States imposed special duties on steel and aluminum products. The common trade agreement NAFTA is in Scherben
The presidential line is very controversial in the United States. In particular, industries that must fear retaliatory tariffs do not respect their trade policy. Because US farmers must fear reprisals from China over soybeans and pork for weeks, Trump surrounds this profession, in which many of his regulars sit. "There are a lot of worries," said Matt Perdue of the National Farmer Union
. Canada's $ 13 billion worth of goods would affect farmers in part. Mexico is targeting pork belly producers. "We put all the investments on hold," said Maschhoff Family Foods pork producer Ken Maschhoff, CNBC. "We should be good patriots and we were, but I do not want to be the patriot who dies at the end of the war."
The escalation between the United States and China persecutes European companies "with great nervousness" EU embbadies in Beijing. Their fear: the Chinese could offer Washington to buy more in the United States in the future than in Europe to settle the trade dispute. An order for 180 Airbus aircraft has already been postponed, so that Beijing could buy more from the US manufacturer Boeing. Every industry is watching exactly where the conflict is going
Chinese punitive tariffs on imports of cars from the United States are being hit by German automakers like BMW and Mercedes, who supply their factories in the United States with from China. "There is concern that no matter how the conflict develops, European companies will be among the losers," EU diplomats said. Daimler has already given a warning on profits.
BMW is also seriously affected. Almost every fifth car that Munich sells on the world's largest car market in China comes from the United States. Beijing has lowered import tariffs on cars from the previous 25 to 15 percent last Sunday. But with the new retaliatory measures, they are now raised to 40%.
The question of whether China or the United States suffered the most from a trade war is a controversial issue among the experts. The US economy lives at twelve percent of exports, the Chinese economy up to 20 percent. The United States exported $ 130 billion to China in 2017, while China shipped $ 500 billion to the United States
. But the dispute should not be limited to foreign trade. Beijing could also make life difficult for Chinese companies operating in China. They sold $ 280 billion worth of goods and services in the country last year. As in disputes with Japan and South Korea, the Chinese authorities may harbad companies in terms of fire safety, hygiene, workplace safety or customs clearance and hinder their activity
(APA / dpa / Reuters)
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