US President Donald Trump has been trying to punish China as a suspect for economic aggression. The war, which the world fears, began to take shape after the president signed a resolution last Thursday, allowing his country to impose customs duties on Chinese imports worth $60 billion, which could have serious repercussions on the global economy.
The presidential note indicates there is a 30-day consultation period that begins as soon as the US administration publishes a list of Chinese goods to be charged. This gives China room to negotiate with the US and reduce the risk of a direct retaliation by Beijing.
This will inevitably lead to further contacts and increased channels of communication between the two countries during the coming period.
Trump’s decision is fraught with several consequences. It is one of the decisions not endorsed by any of the former US presidents, who only hinted at the economic problems with China and its local currency (yuan) and always avoided any real measures such as those taken several days ago.
This has led to a decline in the performance of financial markets in the world, especially in Asian countries. The question is whether the rate of tariffs on Chinese products is consistent with the quantum of Chinese violations that Trump sees.
Will it be retracted later, like some of the decisions Trump has made since coming to the White House? Some analysts say it is possible to soften the measures if they disrupt financial markets.
China has repeatedly pledged to defend its legitimate rights and interests if Washington takes similar measures.
The statement issued by the Chinese Embassy in Washington DC was very strong, stressing that China will fight to the end to defend its legitimate interests through all necessary measures, and that the US decision threatens the international trade system and global economic stability.
China sees that the new tariff package against Beijing set a very bad precedent and it will not stand by idly and ignore the damage to their legitimate rights and interests.
On Friday, Beijing unveiled a list of US products that may be subject to customs duties to the tune of $3 billion in response to the Trump declaration.
However, China’s Ministry of Commerce said Beijing does not want to wage a trade war, but it also never fears a trade war and will go to the end if forced to do so. Such a new tariff may limit the ability of Chinese goods and companies to compete in US markets.
Observers see China’s $3 billion initial tariffs as 20 times less than Trump’s fee package, suggesting that Beijing is still exercising restraint and does not want a trade war.
Most economists warn many will become poorer in the world if such decisions are made, and that Trump’s talk about winning the trade war is ridiculous and dangerous, but it is also true that China may lose a lot because of its dependence on exports.
Chinese exports to the United States accounted for about $500 billion last year. In such a war, there is not one loser. It will affect both the countries as well as other parties.
There are major American companies such as Apple and Boeing that will suffer greatly if China decides to expand its punitive measures.
The imposition of tariffs on US imports coming from China is also the subject of great controversy in the world within the framework of ‘globalisation’ practised by global giants, especially as America considers itself as one of the main founding countries of the World Trade Organization (WTO). All the nations should resort to laws in the case of violations.