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Clouds on the horizon darken day by day.
China could take revenge on the United States in the trade war
A trade war between the United States and China would seriously affect the cooperation of the two largest economies – affecting the rest of the world.
Not only are global supply chains likely to suffer from the trade war between the United States and China, but especially American companies operating in China.
The President of the International Monetary Fund (IMF), Christine Lagarde, warns of the consequences of the war of action. Image: EPA / EPA
"Clouds on the horizon," warns the head of the International Monetary Fund (IMF), Christine Lagarde, "darken by the day." "The biggest and darkest cloud we see is the deterioration of trust," she recently said of the dangers to the global economy. With a value of about $ 200 billion, China will not only charge similar duties on imports from the United States, but it will likely hit in another way. Because the United States exports 130 billion dollars (2017), which is not enough for China, so that Beijing could impose punitive tariffs to an equal extent.
The fear of American companies in China
that they could become the victims – and prepare for the worst. "Our members are very worried about what could happen in the future," said William Zarit, head of the American Chamber of Commerce in China's DPA news agency in Beijing. "Growing tensions between the two sides have already had a negative impact on the work of many of our member companies."
The psychology of commercial conflict has already had "strong" consequences today, says Zarit. "Our companies feel the pressure."
There is still no campaign against American companies in China. "But if the trade war breaks out properly, it is possible," says Huang Weiping, an economics professor at Beijing People's University.
Suddenly Rigorous Inspections
Authorities could undertake rigorous fire safety, occupational health and safety inspections, temporarily close down some facilities or refuse permits to make life difficult for them. "They will hurt the companies a bit," he says.
A first leading victim appears to be the American chip maker Qualcomm. Its plans to buy the Dutch manufacturer NXP Semiconductors NV for $ 44 billion depend only on the approval of regulatory authorities in China, where Qualcomm makes more than half of its sales.
The American chip maker Qualcomm could be one of the first victims of the trade war. Image: AP / AP
But since the beginning of trade tensions, Chinese approval has been suspended. Both companies have set a deadline until Wednesday, so that the deal could well burst.
Indirect Reprisal
There are many ways for China to harm the United States. For example, the campaign against South Korean companies in 2017 is popularly cited when the government installed a US missile defense system in Seoul against Beijing's opposition. Although it is directed against North Korea, but its early warning system can also listen far in China.
South Korean department stores in China suddenly closed for alleged fire safety issues.
Calls for a boycott of goods were also launched. South Korean car sales have dropped. The trip to South Korea has been canceled or boycotted. The tourism industry lost 6-7 billion dollars
Boycott Preparedness
Every second Chinese would boycott "safe" or "maybe" American goods in the event of a trade war, according to a Financial poll Times ". A third is not sure or is not currently buying US goods. "Populism and nationalism are strengthening everywhere in the world, not only in China, but also in the United States," said economics professor Zheng Chaoyu of the People 's University on the possibility of' '. a boycott. He is also concerned about the smooth operation of global supply chains.
An Intel processor shipped from the United States to China, built in Chengdu, southwestern China, by a Chinese subcontractor for a US computer manufacturer in a laptop, which to his turn is shipped to the United States. "China's special position as a country in supply chains is strongly influenced," warns Zheng Chaoyu
Global Supply Chain Dam
"His colleague Huang Weiping agrees:" Of course, global supply chains are damaged. The foundation is trust, and Trump has already broken that trust. "
Foreign Ministry Spokesperson Hua Chunying described the trade dispute as the world's largest" confidence killer "destabilizing the growth base.
The Media Chinese state fights.Trump underestimates what China can do in the event of a strong trade war, writes the Global Times, published by the newspaper People's Daily. (nda / dpa) [19659029] Whiskey and Harley are Victims of Trump's Commercial War
Video: srf
