China's Government Opens Imports to Mitigate the Effects of the Trade War with the United States

Chinese Government Opens Imports to Mitigate the Effects of the Trade War with the United States

Friday, June 29, 2018

Economic and Online Affairs

EFE

China has already launched a new strategy It is open to its neighboring partners and to the European Union to mitigate the effect of the tariff war with the United States, which could lead to an increase in the prices of highly requested imported products, such as beef or soy. [19659006Aumilieudel'incertitudegénéréeparunpossibleconflitcommercialentrelesgrandespuissanceséconomiqueslaChineestplongéedansunprocessusdediversificationdesesmarchéspourcompenserl'impactprévisibledesimportationsaméricainesetfaireensortequelepayssouffrelemoinspossibledesconséquencesde[19659006] In retaliation for protectionist measures from Washington, Beijing announced new tariffs from 25% to 106 products imported from the United States for American values. $ 50,000 million, including soybeans, corn, beef and pork, cars and airplanes.

After the failure of negotiations between the two parties to stop a dreaded trade war, China this week agreed on imports of veal to France and the United Kingdom that imposed the famous disease of mad cow in the 90s.

"The measure of China to allow more European beef imports This means a loss of market share for US farmers," said the official Global Times newspaper

. Chinese badysts have warned that American beef will lose the opportunity to grow in the emerging market. Chinese, so they expect an increase in trade with other countries.

"What China needs are stable trade relations, and the United States, with its sudden policy changes, does not provide oblations", badured the expert of the trade consultant farmer of Beijing, Ma Wenfeng.

The potential that China offers is very important, since it imports nearly 700,000 tons of beef in 2017 worth about 2,700 million euros, according to the Chinese customs. .

The increase in consumption of this type of meat among the middle clbad has turned into one of the sectors with more opportunities in the future, since the Chinese market has a deficit of 8 million Tonne of

The big beneficiary of these trade tensions with the United States can undoubtedly be the European bloc, since, according to a recent visit to Beijing by the European Commissioner for Agriculture, Phil Hogan, the 39 EU may be "a part

Brazil and Uruguay, the main suppliers of beef to China at the moment, could also benefit and, given this new situation, they can increase their exports to the country.

Another recent step taken by China to mitigate the impact of tensions with the United States has been the elimination, announced this week, of duties on imports of soybeans from Bangladesh, the United States. India, Laos, South Korea and Sri Lanka.

This product is essential to the development of compound feeds, for which the imposition of additional tariffs has caused concern to the domestic market before a possible increase in the final price of foods such as meat or milk.

Another country that could benefit because of trade tensions between the two powers is Spain, which could consolidate the position reached in 2017 as China's leading pork supplier.

With the new tariff policy of China, the United States will have a tariff of up to 37% on frozen pork and 45% on fresh meat, and Spain, respectively 12% and 20%, which multiplies the possibilities of importation for this country.