China hits back at US, imposes additional 25% tariff on American imports

Agencies
April 4, 2018

China said it would levy an additional 25 percent tariff on imports of 106 US products including soybeans, automobiles, chemicals and aircraft, in response to proposed American duties on its high-tech goods.

Matching the scale of proposed US tariffs announced the previous day, the Ministry of Commerce in Beijing said the charges will apply to around $50 billion of US imports. Officials signaled that the implementation of the proposed measures will depend on when the US applies its own after a period of public consultation.

The step ratchets up tension in a brewing trade war between the world’s two largest trading nations, with the Trump administration’s latest offensive based on alleged infringements of intellectual property in China. In targeting high-tech sectors that Beijing is openly trying to promote, the US has provoked furious rhetoric from Beijing and stronger threats of retaliation than many had anticipated.

"China’s response was tougher than what the market was expecting -- investors didn’t foresee the country levying additional tariffs on sensitive and important products such as soybeans and airplanes," said Gao Qi, Singapore-based strategist at Scotiabank. "Investors believe a trade war will hurt both countries and their economies eventually."

Asian stocks fell, with the MSCI Asia Pacific Index declining 0.4 percent to the lowest in more than seven weeks. The yen advanced.

Beijing’s proposed targets strike at the core of commercial relations between the two countries, and at some of the most politically sensitive goods in core Trump constituencies. For example, China is the world’s largest soybean importer and biggest buyer of U.S. soybeans in trade worth about $14 billion last year.

The US list of planned charges on more than 1,300 product categories focused on China’s industrial machinery and technology exports. China’s envoy to the WTO, Zhang Xiangchen, called it "an intentional and gross violation of the WTO’s fundamental principles of non-discrimination and bound tariffs."

Industries including aerospace, information and communications technology, robotics and machinery were among those targeted by the USTR on Tuesday. It said it chose products to minimize the impact on the U.S. economy and consumers.

In addition to advanced technologies such as communication satellites, the U.S. list includes things ranging from various types of steel to television components, medical devices, dishwashers, snow blowers and even flame throwers.

"The U.S. list suggests that the government is targeting the ’Made in China 2025’ initiative, while China’s retaliation intends to bring Americans back to the negotiation table," said Zhou Hao, an economist at Commerzbank AG in Singapore. said in an e-mail.

The release of the list by U.S. Trade Representative Robert Lighthizer leads into a roughly 60-day period when the public can provide feedback and the government holds hearings on the tariffs. The 25 percent tariffs come on top of any existing levies.

China’s Made in China 2025 plan was announced in 2015, and highlighted 10 sectors for support on the way to China becoming an advanced manufacturing power, from information technology, to robotics and aerospace. In addition, China has a separate development strategy for artificial intelligence, published in 2017.

USTR said the public can submit written comments on the tariffs until May 11, and it will hold a public hearing on them on May 15 in Washington.

"The U.S. has this vicious intention to strangle China’s high-tech innovation," said Wei Jianguo, former vice commerce minister and now an executive deputy director of the China Center for International Economic Exchanges, a government-linked think tank. "China won’t submit to the U.S. bully. Our countermeasures will hit their soft spots."

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News Network
March 3,2020

Mar 3: Just hours after the ending of a week-long “reduction” in violence that was crucial for Donald Trump’s peace deal in Afghanistan, the Taliban struck again: On Monday, they killed three people and injured about a dozen at a football match in Khost province. This resumption of violence will not surprise anyone actually invested in peace for that troubled country. The point of the U.S.-Taliban deal was never peace. It was to try and cover up an ignominious exit for the U.S., driven by an election-bound president who feels no responsibility toward that country or to the broader region.

Seen from South Asia, every point we know about in the agreement is a concession by Trump to the Taliban. Most importantly, it completes a long-term effort by the U.S. to delegitimize the elected government in Kabul — and, by extension, Afghanistan’s constitution. Afghanistan’s president is already balking at releasing 5,000 Taliban prisoners before intra-Afghan talks can begin — a provision that his government did not approve.

One particularly cringe-worthy aspect: The agreement refers to the Taliban throughout  as “the Islamic Emirate of Afghanistan that is not recognized by the United States as a state and is known as the Taliban.” This unwieldy nomenclature validates the Taliban’s claim to be a government equivalent to the one in Kabul, just not the one recognised at the moment by the U.S. When read together with the second part of the agreement, which binds the U.S. to not “intervene in [Afghanistan’s] domestic affairs,” the point is obvious: The Taliban is not interested in peace, but in ensuring that support for its rivals is forbidden, and its path to Kabul is cleared.

All that the U.S. has effectively gotten in return is the Taliban’s assurance that it will not allow the soil of Afghanistan to be used against the “U.S. and its allies.” True, the U.S. under Trump has shown a disturbing willingness to trust solemn assurances from autocrats; but its apparent belief in promises made by a murderous theocratic movement is even more ridiculous. Especially as the Taliban made much the same promise to an Assistant Secretary of State about Osama bin Laden while he was in the country plotting 9/11.

Nobody in the region is pleased with this agreement except for the Taliban and their backers in the Pakistani military. India has consistently held that the legitimate government in Kabul must be the basic anchor of any peace plan. Ordinary Afghans, unsurprisingly, long for peace — but they are, by all accounts, deeply skeptical about how this deal will get them there. The brave activists of the Afghan Women’s Network are worried that intra-Afghan talks will take place without adequate representation of the country’s women — who have, after all, the most to lose from a return to Taliban rule.

But the Pakistani military establishment is not hiding its glee. One retired general tweeted: “Big victory for Afghan Taliban as historic accord signed… Forced Americans to negotiate an accord from the position of parity. Setback for India.” Pakistan’s army, the Taliban’s biggest backer, longs to re-install a friendly Islamist regime in Kabul — and it has correctly estimated that, after being abandoned by Trump, the Afghan government will have sharply reduced bargaining power in any intra-Afghan peace talks. A deal with the Taliban that fails also to include its backers in the Pakistani military is meaningless.

India, meanwhile, will not see this deal as a positive for regional peace or its relationship with the U.S. It comes barely a week after Trump’s India visit, which made it painfully clear that shared strategic concerns are the only thing keeping the countries together. New Delhi remembers that India is not, on paper, a U.S. “ally.” In that respect, an intensification of terrorism targeting India, as happened the last time the U.S. withdrew from the region, would not even be a violation of Trump’s agreement. One possible outcome: Over time the government in New Delhi, which has resolutely sought to keep its ties with Kabul primarily political, may have to step up security cooperation. Nobody knows where that would lead.

The irresponsible concessions made by the U.S. in this agreement will likely disrupt South Asia for years to come, and endanger its own relationship with India going forward. But worst of all, this deal abandons those in Afghanistan who, under the shadow of war, tried to develop, for the first time, institutions that work for all Afghans. No amount of sanctimony about “ending America’s longest war” should obscure the danger and immorality of this sort of exit.

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News Network
June 13,2020

Mexico City, Jun 13: The number of people, who have died of COVID-19 in Mexico, has risen by 544 to 16,448 within the past 24 hours, Jose Luis Alomia, the director of epidemiology at the Health Ministry, said.

He also said on late Friday that the number of confirmed coronavirus cases had increased by 5,222 to 139,196 within the same period of time.

A day earlier, the Latin American nation has recorded 4,790 new confirmed cases of the coronavirus, with 587 fatalities.

The World Health Organization declared the COVID-19 outbreak a pandemic on March 11. To date, more than 7.6 million people have been infected with the coronavirus worldwide, with over 425,000 fatalities, according to Johns Hopkins University.

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News Network
May 20,2020

Washington, May 20: Once dubbed as historic by him, US President Donald Trump on Tuesday said he now feels ‘differently’ about the trade deal he signed with China earlier this year.

He said this while once again venting out his frustration with the Beijing leadership, accusing it of letting coronavirus spread.

Till Tuesday, over 92,000 Americans have died and 1.5 million tested positive for coronavirus that has globally killed around 320,000 people.

The US and China had signed a deal in January to end their 22-month-long trade war during which the two countries slapped tit-for-tat tariff hikes on products worth nearly half a trillion USD.

Under it, Beijing agreed to increase its purchase of US goods by USD 200 billion in 2020-2021.

“I feel differently now about that deal than I did three months ago,” Trump told reporters during a Cabinet meeting at the White House.

“We will see what all happens, but it's been a very disappointing situation. A very disappointing thing happened with China because the plague flowed in and that wasn't supposed to happen and it could have been stopped," he said.

Trump said he was very excited when the trade deal with China was signed.

“But once the virus came in, once the plague, as I called it, came in, I said how did they let that happen? And how come it didn't go into other sections of China? Why did they block it from leaving Wuhan? But they didn't block it from going to the rest of the world, including the United States. Why is that? Beijing doesn't have it. Other places don't have it,” he said.

Trump did not respond to questions on retaliation against China.

Meanwhile, top American senators continued to press the administration that rules of engagement with China needs to change post-coronavirus.

“As we know, they unleashed this virus on America and the world with their classic communist cover-up, deception, continued propaganda campaign, costing now over 90,000 American lives, 35 million Americans losing their jobs so far,” Senator Martha McSally said during a Congressional hearing.

“We don’t know who patient zero is, they destroyed samples, they silenced doctors, they kicked out journalists, they impacted international travel to seed this and their reckless behaviour continues to be the root of all this,” she said.

As a result of coronavirus, the American economy has been thrown into recession; more than 36 million people have lost their job – the worst ever after last century’s great depression.

Many of the US states have now started opening up, after taking necessary precautions.

By conservative estimates, it will take several quarters for the economy to be back on track.

Trump in the last a few weeks has exuded confidence that the economy will be back on track next year.

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