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Those who hoped for a solution to the trade dispute between US President Donald Trump (left) and Chinese head of state Xi Jinping (right) were disappointed on Friday. China's "biggest trade war of economic history" has begun: on July 6, the US imposed billions of punitive tariffs on Chinese goods and China imposed retaliatory rights of similar magnitude soon after. Companies in Austria and throughout Europe are also affected, as have criticized the professional badociations.
Chinese head of state Li Keqiang, who is expected to return to Berlin on Monday, has once again pleaded for free trade and multilateral agreements. Chinese goods worth $ 34 billion (29 billion euros) came into effect at midnight on the US East Coast (06:00 CEST). They affect a total of 818 high-tech products, including cars, aircraft parts and hard drives.
Beijing imposed retaliatory tariffs a few hours later. "Chinese measures are effective immediately," said a spokesman for the Foreign Ministry. According to the Xinhua News Agency, China also valued at $ 34 billion of additional customs duties of 25%. Above all, they are likely to hit agricultural products.
>>> Read more: China remains difficult in the trade dispute
Trump Highlights US Trade Deficit
Donald Trump cites his controversial domestic tariff policy with China's huge trade deficit, which he considers an unfair trade relationship. Last year, the US deficit was $ 375 billion. In addition, Trump accuses China of undue advantage by stealing intellectual property and imposing technology transfer on foreign investment.
Chinese Premier Li, visiting Bulgaria at a meeting with 16 EU and Balkan states, said: good for everyone. "China will defend itself against tariff increases, but a trade war is a pity for free trade and the multilateral process.Despite all criticism, Trump has already introduced another level of escalation: his representative to trade, Robert Lighthizer, tests additional supplements on Chinese goods with a total value of $ 16 billion., In addition, the US president has threatened in recent weeks to respond to Chinese countermeasures by imposing other import duties worth $ 400 billion The vast majority of Chinese exports to the United States would be affected.
>>> Read more: Rights of retaliation of the 39; EU on US products in force.
Impact on Austria
According to Michael Löwy, divisional head of international relations at the Federation of Industrialists (IV), Austrian companies could be affected primarily by those who produce and export to China since China. According to him, there are more Austrian companies that produce in China and export to the United States than vice versa and that therefore risk to be more affected. "19659002" "No one benefits," said the director of IHS. Martin Kocher. In the end, all the measures made the products become more expensive. The consumer ends up paying: "And that at the expense of growth".
In Berlin, the German Chamber of Commerce and Industry (DIHK) and the BGA Foreign Trade Association warn of the consequences for companies around the world. "If two quarrel, no third party," said the BGA. For many products, the international division of labor has progressed so far that so-called targeted measures inevitably affect supply chain firms in non-participating countries as well.
>>> Read more: No US tariffs on iPhones from China
The Global Fear of a Dramatic Economic Downturn
Daimler has already issued a profit warning, in part because the automaker is exporting SUVs made in China – it s & rsquo; Is expecting lower sales and higher costs. DIHK also referred to "the increase in supply relationships between German subsidiaries in China and those in the United States". Volker Treier, Director of Foreign Trade of DIHK, therefore called on Germany and China to "adhere clearly and unambiguously to the rules of the international order of international trade and to seek multilateralism at the governmental summit on Monday. and Tuesday in Berlin ".
All over the world, the conflict between the two largest economies is fueling the fear of a dramatic economic recession. German government spokesman Steffen Seibert pointed out in Berlin that trade disputes ultimately hurt all actors. The Russian government is monitoring the trade dispute with "great attention" and will protect its interests "with the necessary measures," said Kremlin spokesman Dmitry Peskov
>>> Read more: US tariffs punitive on EU products in force
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