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Beijing. If China decides not to aggravate the customs war with the United States, it still has many tools to hit Washington where it hurts, including through boycotts and state bureaucracy .
According to experts, the Chinese economy has a lot of ways to counter the import rights of US President Donald Trump, in addition to simply imposing the same measures that have been used in the past and which has proven to be very effective. Several additional tools would help China in the growing trade war with the United States, as traditional responses such as the imposition of new duties on US imports would result quickly
Chinese citizens are eager to receive signs from their government about the boycott of foreign imports, so Beijing may discourage people from buying US goods. Last year, South Korea announced that it would deploy a US missile defense system. The Chinese boycotted Korean Hyundai cars, refrained from making trips to South Korea, dropped the market by more than 60% and ignored Korean supermarkets. Lotte ", forcing the temporary closure of nearly 55 stores
There are also enough options for the United States, such as fast food chains like McDonald's or Starbucks. With about 1.4 billion users, the Chinese market is a huge badet for every business, and for companies already established in China, the immediate loss of such a market will hit them heavily
"It can be very ugly," said Deborah Elms, founder of the Asian Trade Center. "The nightmare scenario for businesses may even rule out the government.What will happen if Chinese consumers start boycotting US products?" They stop drinking Starbucks? 39; Aphons? "
The government could simply point out that it wants consumers to "stop doing their shopping at KFC or stop buying US products, no matter what they are," said Bill Reynsch, senior advisor at Center for Strategic and International Studies.
This simple action would have failed Starbucks plans to double the 3,300 stores already in China. This would have hit General Motors with growth of 8 percent, and would have led to "a number of" business plans for all small US companies.
In addition to a consumer boycott, China may impose slight but tedious changes on consumer banking systems, introducing small changes in the management of US citizens' bank accounts. At a higher level, China could make it more difficult to open bank accounts for US companies.
"When you enter a bank as an employee of a foreign or US company, you may experience minor regulatory changes only in the way you manage your account," said Carla Klingner, CEO of Palindromes , a holding company The logistics industry in China
Beijing could claim that all US companies are required to pay taxes in China, suggests Hosuke Lee Makiama, director of the European Center for International Political Economy.
And if that's not enough, the Chinese government could disrupt the supply chains of US companies, says Bill Reynsch. In practice, this would mean an inspection of Foxconn's production facility, in which several "violations" occurred accidentally, closing any "phonograph" production for three months. And the "Aphonomes" are far from the only electronic devices produced in Foxcon's factories.
According to Erin Ennis, Vice President of the US-China Business Council, all US business operations in China represent a $ 550 billion market for US companies
"There are many ways China can scale," says Ennis. "The license can begin to be delayed, companies can face higher levels of control over their products in the ports where they arrive."
However, other experts say that we should expect China to act as limited as possible. It is in Beijing's interest to maintain a good image and to make the United States look like a commercial aggressor.
"I think China still has a vested interest in being a respectful player, and proportional answers help you to say that you acted in accordance with the rules of the World Trade Organization," said Edward Aldon. member of the Council of International Relations
.
What's best about Beijing, is that there are always other companies – from Japan, the EU, Korea, Russia – who are ready to take the American part of the Chinese market for themselves. If US companies suffer because of Washington's behavior, China can simply replace them with other companies and continue as they have done.
"What will the Chinese do when they take revenge?" Then they will say, "We can easily get this American company because we have a Japanese company or a Korean company or a European company ready to do the same thing here." it's a very plausible scenario of events that are about to happen, "said Rufus Jerxa, a former sales representative in the United States.
According to experts, the Chinese economy has a lot of ways to counter the import rights of US President Donald Trump, in addition to simply imposing the same measures that have been used in the past and which has proven to be very effective. Several additional tools would help China in the growing trade war with the United States, as traditional responses such as the imposition of new duties on US imports would result quickly
Chinese citizens are eager to receive signs from their government about the boycott of foreign imports, so Beijing may discourage people from buying US goods. Last year, South Korea announced that it would deploy a US missile defense system. The Chinese boycotted Korean Hyundai cars, refrained from making trips to South Korea, dropped the market by more than 60% and ignored Korean supermarkets. Lotte ", forcing the temporary closure of nearly 55 stores
There are also enough options for the United States, such as fast food chains like McDonald's or Starbucks. With about 1.4 billion users, the Chinese market is a huge badet for every business, and for companies already established in China, the immediate loss of such a market will hit them heavily
"It can be very ugly," said Deborah Elms, founder of the Asian Trade Center. "The nightmare scenario for businesses may even rule out the government.What will happen if Chinese consumers start boycotting US products?" They stop drinking Starbucks? 39; Aphons? "
The government could simply point out that it wants consumers to "stop doing their shopping at KFC or stop buying US products, no matter what they are," said Bill Reynsch, senior advisor at Center for Strategic and International Studies.
This simple action would have failed Starbucks plans to double the 3,300 stores already in China. This would have hit General Motors with growth of 8 percent, and would have led to "a number of" business plans for all small US companies.
In addition to a consumer boycott, China may impose slight but tedious changes on consumer banking systems, introducing small changes in the management of US citizens' bank accounts. At a higher level, China could make it more difficult to open bank accounts for US companies.
"When you enter a bank as an employee of a foreign or US company, you may experience minor regulatory changes only in the way you manage your account," said Carla Klingner, CEO of Palindromes , a holding company The logistics industry in China
Beijing could claim that all US companies are required to pay taxes in China, suggests Hosuke Lee Makiama, director of the European Center for International Political Economy.
And if that's not enough, the Chinese government could disrupt the supply chains of US companies, says Bill Reynsch. In practice, this would mean an inspection of Foxconn's production facility, in which several "violations" occurred accidentally, closing any "phonograph" production for three months. And the "Aphonomes" are far from the only electronic devices produced in Foxcon's factories.
According to Erin Ennis, Vice President of the US-China Business Council, all US business operations in China represent a $ 550 billion market for US companies
"There are many ways China can scale," says Ennis. "The license can begin to be delayed, companies can face higher levels of control over their products in the ports where they arrive."
However, other experts say that we should expect China to act as limited as possible. It is in Beijing's interest to maintain a good image and to make the United States look like a commercial aggressor.
"I think China still has a vested interest in being a respectful player, and proportional answers help you to say that you acted in accordance with the rules of the World Trade Organization," said Edward Aldon. member of the Council of International Relations
.
What's best about Beijing, is that there are always other companies – from Japan, the EU, Korea, Russia – who are ready to take the American part of the Chinese market for themselves. If US companies suffer because of Washington's behavior, China can simply replace them with other companies and continue as they have done.
"What will the Chinese do when they take revenge?" Then they will say, "We can easily get this American company because we have a Japanese company or a Korean company or a European company ready to do the same thing here." it's a very plausible scenario of events that are about to happen, "said Rufus Jerxa, a former sales representative in the United States.
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