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China filed a lawsuit against the United States at the World Trade Organization after Donald Trump's threats to place tariffs on $ 200 billion (150 billion pounds) of additional Chinese goods [19659002] comes less than a week after the US president called for a second round of tariffs on China, in retaliation for Chinese tariffs on US products.
On July 6, the United States imposed tariffs of 25% on $ 34 billion worth of Chinese goods, pushing Beijing to pay taxes on the same amount of US exports to the United States. China. In response, the White House last week released a vast list of Chinese products, from tobacco to pet food, worth $ 200 billion that it would target with 10 tariffs. %. Beijing said it would "defend itself as usual" and file a complaint with the WTO.
The latest set of tariffs will only come into effect in September, making China's response unusually fast. Until now, Beijing has waited for Washington to "pull the first blow" in the escalation of the trade war.
Monday's Chinese economic data fanned fears that trade friction between the two countries may soon have an impact on the world's second-largest economy. The Chinese economy of 12.5 billion dollars grew 6.7% in the second quarter compared to the same period a year earlier. It was in line with expectations, but was modest by recent Chinese standards
The FTSE 100 index was down just over 1% at lunchtime on Monday in London. In Asia, the MSCI Asia-Pacific equities index, with the exception of Japan, fell by 0.36%, while the Chinese mainland stocks, which are among the worst performing in the world this year, fell 0.6%.
The growth of the economy was stable, but it added: "The uncertainties of the external environment are rising."
"Generally speaking, the unilateral trade frictions unleashed by the United States will have an impact on the economies of both countries."
In total, the United States has threatened to impose tariffs on more than $ 500 billion worth of Chinese goods in the United States, an amount that Beijing can not reciprocate. Some US business groups are worried that the disparity is pushing Beijing to respond with "qualitative measures" such as delaying approvals for foreign investment in China, additional customs inspections for goods or boycotts. US brands
The trade war is not the only potential brake on the Chinese economy. In recent years, the Chinese government has launched a campaign to reduce financial risk by tightening loans and reducing excessive debt. Analysts say this has led to a broader slowdown.
Factory production in June fell to its lowest level in two years. The country is also experiencing a slowing real estate market and slower than expected domestic consumption. Retail spending rose 9% in June, half a percentage point higher than the previous month.
"Uncertainty over the scale and composition of US tariffs on Chinese exports is already undermining business confidence and delaying investment," said Louis Kuijs, head of the economy. from Asia to Oxford Economics. If the United States and China do not resume talks in the next two months, the conflict will intensify, with major economic implications for themselves and the global economy. "
Despite the slowdown, China's monthly trade surplus with the United States reached a record high in June, rising from $ 24.6 billion in May to $ 29 billion. For the first half of this year, Chinese exports to the United States increased by 13.6%.
China has repeatedly stated that it can better deal with a trade war than the United States, but the prospect of tariffs on $ 500 billion of Chinese products worries investors and businesses
Tariffs, put in place on July 6, are extended to an additional $ 200 billion, as threatened Mr. Trump. According to HSBC estimates, the Chinese economy could lose 0.4 percentage point.
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