trade war: C & rsquo; is the war: China, US trade blows through the tariffs

The United States and China on Friday raised tariffs on billions of dollars worth of goods, launching what Beijing called "the biggest trade war of economic history" in a spiral conflict around the world. technology.

The Trump administration is facing Beijing on development tactics that it says include theft or pressure on foreign companies to transmit technology to them. US officials are worried about Chinese plans to create technology champions in areas such as robotics, biotechnology and artificial intelligence that will erode US industrial leadership.

Washington has imposed 25% duty on $ 34 billion of imports from China in the first of a series of possible increases that, according to President Donald Trump, could affect up to $ 25 billion. To $ 550 billion of Chinese products. The Chinese Ministry of Foreign Affairs said the "retaliatory tariffs" had taken effect. The People's Daily, the Communist Party's newspaper, said they had been taxed on a $ 34 billion list of goods issued last month, including soybeans, pork and electric vehicles.

Washington "unleashed the biggest trade war in economic history," according to a statement from the Ministry of Commerce. Businesses fear that the spiraling conflict may dampen global economic growth. Chinese exporters reported that US orders fell in anticipation of higher prices. But the Asian financial markets took Friday's developments in stride.

CHRONIC VOLTAGE IN RELATION

Japan's leading stock index, the Nikkei 225, gained 1.1% while the Shanghai Composite Index added 0.5%. Hong Kong's Hang Seng also rose 0.5%. The conflict between the two largest economies in the world reflects a chronic tension in their relationship as customers, trading partners and increasingly as competitors. It is also rooted in the conflict between American notions of free trade and the development model led by Beijing.

The ruling Communist Party in China insisted on making changes at its own pace while keeping to the state-led technological development seen as the path to prosperity and prosperity. global influence. Beijing has announced reforms this year, including the end of the foreign ownership limits in its auto industry, but none directly addresses the complaints that fuel its conflict with Washington. On Thursday, Trump said that higher tariffs on an additional $ 16 billion worth of Chinese goods would come into effect in two weeks.

After that, hostilities could intensify: Trump said Washington was ready to target an additional $ 200 billion in Chinese imports – and $ 300 billion more – if Beijing did not give in. This would bring the total Chinese goods targeted to $ 550 billion, more than the $ 506 billion worth of goods that China shipped to the United States last year. The Chinese authorities reject accusations that they steal or force foreign companies to surrender the technology.