China trade battle: How we got here

Apr 05, 2018, 01:00

"If history is any indication, these proposed tariffs will not work and will be entirely counterproductive", said Dean Garfield, chief executive officer of the Information Technology Industry Council.

"In the end of 2016 and beginning of 2017, we saw an uptick in offensive operations against USA targets by China", said Adam Meyers, vice president of intelligence at CrowdStrike. Investors bought consumer products companies and other stocks that pay large dividends.

Stocks are sinking again after the US and China each announced tariffs on goods exported by the other, a move that increased investors' worries over a trade dispute that could slow down global commerce.

The commerce ministry said in a statement that tariff proposals are "completely unfounded, a typical unilateralist and protectionist practice that China strongly condemns and firmly opposes".

China's duties on major USA imports included aircraft.

Trump has criticised China for its large trade surplus with the U.S., and has demanded a US$100 billion (NZ$137 billion) reduction in the trade imbalance, but the tariffs appear to instead target China's innovation programme.

Chinese policies had "coerced American companies into transferring their technology and intellectual property to domestic Chinese enterprises", the trade body said. This came hours after the Trump administration released more details on tariffs of about 25 percent on a range of Chinese goods, also worth $50 billion. But some critics warned that Americans will end up being hurt.

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He said the United States has a $450-million trade surplus with Canada on wine and is always looking to increase its market share.

Stock markets recoiled on Wednesday as China retaliated in an escalating trade war with the United States, leaving investors reluctant to take positions in anything but the safest of assets.

Presidents Xi Jinping (China) and Donald Trump (US) in Beijing a year ago.

"The current tariff measures from both parties are very unlikely to be implemented", said Ren Qing, a partner at Global Law in Beijing who has advised the Chinese government on its response to the intellectual-property investigation.

Jim Boyce, a Beijing-based wine consultant who writes the blog Grapewallofchina, said while there were concerns that the duties would make US wine less cost-competitive, the greater worry was over the image the trade war would generate for USA goods. "Tariffs penalize US consumers by increasing prices on technology products and will not change China's behavior".

"China is also trying to weaken our will by targeting certain segments of our economy", White House trade adviser Peter Navarro said in an interview with National Public Radio. The Trump administration's policies are aimed at preventing China from further endangering America's technology dominance.

The brinksmanship may still lead to a breakthrough in the coming days, with Chinese President Xi Jinping scheduled to give a major speech on "new opening up measures China will take" at the Boao Forum on Monday, according to Foreign Minister Wang Yi.

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In January, a federal court in Wisconsin convicted a Chinese manufacturer of wind turbines, Sinovel Wind Group, of stealing trade secrets from the American company AMSC and almost putting it out of business.

This is the second wave of tariffs imposed by the US.

President Moon Jae-in said growing trade protectionism and trade conflict between the USA and China could hurt the Korean economy, and he urged the country to prepare.

For example, beyond the current trade dispute is "the battle to see which country will control the world's next cutting-edge technologies and emerge as the dominant global power", Katsoras says. With the arrival in 1995 of the Geneva-based World Trade Organization, Section 301 largely faded from use.

EIA said USA refiners operated at 93% of operable capacity last week versus expectations for an unchanged figure of 92.3%.

The United States buys little Chinese steel or aluminum, but analysts said Beijing would feel compelled to react, partly as a "warning shot" ahead of the technology dispute. Aerospace company Boeing shed $14.07, or 4.3 percent, to $316.75.

"In the event of all-out trade war, both may lose all sense of reason, but I do hope it will never happen". Farmers are especially vulnerable targets in trade spats because they rely so much on foreign sales. The 106 affected products will also include soybeans and chemicals.

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