Beijing – China announced a ventilative tariff on selected US imports and a no -confidence investigation in Google on Tuesday, effective a few minutes after a comprehensive levy on Chinese products planted by US President Donald Trump.
US tariffs on imports from Canada and Mexico were also ready to be implemented on Tuesday, before Trump agreed to stop 30-day, as the two countries agreed to their concerns about border security and drug trafficking Was worked to overcome. Trump planned to talk with Chinese President Xi Jinping in the coming days.
White House press secretary Karolin Lewitt said on Tuesday, “This is being determined and will be very soon.”
This is not the first round of tight-for-tat action between the two countries. China and the US were engaged in a growing trade war in 2018, when Trump repeatedly raised the tariff on Chinese goods and China replied every time.
This time, analysts said, China is very prepared, which announces measures beyond tariffs and cut into various sectors of the US economy. The government is also more careful than harassing its delicate and heavy trade-dependent economy.
“This is the goal to find measures that maximize the impact and reduce the risk that can withstand the Chinese economy,” said Gary NG, a senior economist at Natics Corporate and Investment Banking in Hong Kong. “At the same time … China is trying to increase its bargain chips.”
John Gong, a professor at the University of International Trade and Economics at Beijing, called the response a “measured”. “I don’t think they want to increase business war,” he said. “And they see this example from Canada and Mexico and perhaps they are expecting the same thing.”
Counter-tariff
China said it would implement 15% tariffs on coal and liquefied natural gas products and also effective the tariff of 10% tariffs on crude oil, agricultural machinery and large engine cars imported from the US will be effective next Monday.
The Chinese State Council Tariff Commission said in a statement, “Unilateral tariff growth seriously violates the rules of the World Trade Organization.” “It is not only unexpected in solving its problems, but also damages general economic and trade cooperation between China and America”
The WTO on Tuesday confirmed that it received a notice of China’s request for consultation with the United States about the tariffs on Chinese goods. This step shuts down a 60-day period for both sides to resolve their differences, and if not, the case can be brought in front of a three-judge panel in a geneva-based business body.
However, the WTO’s dispute-resolution process has been stabilized in recent years as many US administration has blocked the appointments of judges in their appeal court.
China’s measures on American exports may be limited. Although the US is the largest exporter of liquid natural gas globally, it does not export much to China. According to the US Energy Information Administration, in 2023, the US exported 173,247 million cubic feet LNG to China, about 2.3%of its total natural gas exports.
China imported less than 110,000 vehicles from the US last year, although auto market analyst Lei Jing feels that tariffs will be painful for GM, which is adding Chevrolet Taho and GMC Yukon to its China line-up, and For Ford, which exports Mustang and F -150 rapter pickup.
The response from China is calculated and measured, Stephen Dover, the main market strategist and head of the Franklin Templeton Institute, said a financial research firm. However, he said, the world is working for further impact.
“One risk is that it is the beginning of a tight-for-tat trade war, resulting in low GDP growth everywhere, high US inflation, a strong dollar and reverse pressure on US interest rates,” said Dover.
Further export control on important minerals
China announced export control over several elements important for the production of modern high -tech products. The measure on the announcement on Tuesday came into effect.
They include Tungsten, Telurium, Bismath, Molibdenum, and Indium, many of which have been designated as important minerals by the American Geological Survey, which means they are essential for American economic or national security whose supply in supply Is unsafe for.
Export control is addition to China placed in December on major elements such as Gallium.
“They have a very developed export control regime,” Philip Luck, an economist of the Center for Strategic and International Studies and State Department officials, said on Monday, “They have a lot of developed export control regime.”
“We depend on them for many important minerals: Gallium, germanium, graphite, a host of others,” he said. “They can cause some significant harm to our economy.”
Going after google
For market regulation, the Chinese state administration said on Tuesday that it was investigating Google on suspicion of violating antitrust laws. The declaration did not mention tariffs, but Trump came to China a few minutes after the 10% tariff came into effect.
It is not clear how the investigation will affect Google’s operation. Gong said the company has faced long -term complaints from Chinese smartphone manufacturers on its commercial practices around Android operating system.
Overall, Google has a smaller appearance compared to many markets in China, its search engine is blocked like many other western platforms. Google took out the Chinese market in 2010, after Google refused to follow the censorship requests from the Chinese government and follow a series of cyber attacks on the company.
Google did not comment immediately.
Tommy Hilfiger in Crosshair
The Ministry of Commerce also placed two American companies in the list of incredible institutions: PVH Group, which owns Calvin Klein and Tommy Hilfiger and Illumina, a biotechnology company with offices in China. Listing can prevent them from engaging in imports or export activities related to China and making new investment in the country.
The ministry says the investigation suggests that these two American companies have “disrupted general business with Chinese companies, took discriminatory measures against Chinese companies and have severely damaged the legitimate rights of Chinese companies”
Beijing began investigating the PVH group in September last year, which was on “unfair Shinjiang-related behavior” after allegedly boycotted the use of Xinjiang cotton on “unfair genius-related behavior”.
Illumina competes with the Chinese Biotech firm BGI in gene-sequencing.
In a statement, Ilumina said that it is a long -standing appearance in China and it complies with all laws and rules where it operates. “We are assessing this announcement with the goal of finding a positive resolution,” the company said.
Keeping these American companies in the list of incredible institutions is “dangerous” because it shows that the Chinese government is using the list to pressurize American companies to take one side, George Chen, Managing Director of Asia Group, said, ” Washington DC-Class Business Policy Consultation.
“This is almost like telling American companies, what your government is doing, it is bad, you need to tell the government that if you add more tariffs or at the end of the day hurt us the Chinese relations, then It will be a backfire on American companies, “said chain.