It's finally here. The trade wars have started between China and the US. In March, Trump announced another set of tariffs, which target $60 billion in Chinese exports that are meant to retaliate against Chinese policies that force US tech companies to give up intellectual rights. I mean, there's gotta be a reason why China has so many knockoffs right?
Trump is unveiling a list of advanced technology Chinese imports targeted for U.S. tariffs to punish China for technology transfer policies part of his March 22 proclamation. The Section 301 tariffs will target Chinese industries benefiting from the "Made in China 2025" plan, China's plan to get rid of advanced technology imports and replace them with domestic ones. China's trying to dominate these 10 industries: advanced information technology, robotics, aircraft, shipbuilding and marine engineering, advanced rail equipment, new energy vehicles, electrical generation equipment, agricultural machinery, pharmaceuticals and advanced materials.
So what is this plan? The government has launched another state campaign that basically seeks to tell the world that they want to dominate every industry and become self-sufficient, but not to the point they isolate themselves. Last time China isolated itself, it didn't end up too well.
Now China Strikes Back with new tariffs on 128 US products in order "to safeguard China's interests". This will target over $3 billion in imports from the US. It entails a 15% tariff increase American fruits and nuts and a 25% on pork, recycled aluminium and other goods. That would suck for Chinese citizens and for US farmers.
And now, markets around the world are slumping. Major benchmarks have been missed all over the place. The dollar sank against the Euro and a bit with the Yen. China's Asian trading partners are becoming quite alarmed, but China had assured them that they will not close their markets and stop trading with them.
Reuters
POLITICO
TIME
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