The United States’ findings on China’s 301 survey may be announced. President Trump will impose a tariff of approximately US$50 billion on China’s imports. The Sino-US trade war is imminent and how China will respond, raising global concern.
After signing the 'China Economic Aggression' memorandum on Thursday (22 August), Trump announced that it would levy an import tax on a series of Chinese goods and that the annual tax amount would be about 50 billion U.S. dollars to punish China for stealing intellectual property rights and trade secrets of the United States.
Trump said in the White House that he regards China as a friend and also respects Chinese President Xi Jinping. However, he said that China has the greatest trade surplus with the United States and criticized China for stealing American intellectual property.
He said: 'The word I want to use is reciprocal. If they receive our fee, we will receive their agreed fee.'
Trump stressed that China must cut its trade surplus with the United States by 100 billion U.S. dollars as soon as possible.
The U.S. Trade Representative Office (USTR) will initiate tariffs on certain commodities in China within 15 days. The White House predicts that the new tariffs may affect about 1,300 products imported from China, and strive to have the 'minimal impact on U.S. consumers. '.
The U.S. Department of the Treasury will announce after 60 days which Chinese funds will be restricted to invest in the United States.
Trump took punitive measures against China on the grounds that China had stolen the technology and trade secrets of the United States. U.S. government officials said that thefts in China caused U.S. companies to lose billions of dollars in revenue and cause thousands of people to lose their jobs.
These measures will become the toughest means for Trump to attack China's rapidly emerging economic rival. He once accused China of plundering the United States.
China stated that it is firmly opposed to the U.S. side’s unilateralism and trade protectionism. China will never sit back and ignore the legitimate rights and interests. It will certainly take all necessary measures to resolutely defend its legitimate rights and interests.
US Trade Representative Robert Lighthizer stated that tariffs will target China’s high-tech products, and that if China levies retaliatory tariffs on exports of agricultural products to the United States, it will “remove counterfeits”.
The United States has always accused China of forcing U.S. companies to transfer patented business data and intellectual property rights. As a condition of operating in China, the Office of the U.S. Trade Representative conducted an investigation in accordance with Article 301 of the Trade Law last August.
Letitze said that China may impose retaliatory measures on US exports of agricultural products, especially soybeans. He pointed out that if the situation really occurs, the United States will immediately take countermeasures. However, he also stressed that 'no one can win the trade war. '.
The U.S. trade representative Robert Lighthizer stated that the U.S. side hopes to 'improve the greatest pressure on China to minimize the pressure on U.S. consumers'.
Pendulum open decisive posture
It is reported that the United States' current taxation of goods for China is locked in the areas of science and technology, communications and intellectual property, including semiconductors, telecommunications equipment and computer components, which is equivalent to about one-eighth of China’s total exports to the United States.
The U.S. side may further restrict investment in China involving joint venture operations and technology transfer. These measures may cause China's export growth to drop by about 0.7 percentage point, which will drag GDP growth by about 0.1 percentage point.
At a regular press conference on the 21st, Chinese Foreign Ministry Spokesperson Hua Chunying stated that China does not want to fight any trade with anyone. 'But if someone is not forcing us to fight, we will not be afraid, and the second will not hide.' Ying said that the recent concerns about trade friction between the United States and other countries, including the United States and China, are of great concern to all parties and have all expressed concern about maintaining a normal international trade order and the stability of the world economy. She said that the economic and trade relations between China and the United States The essence is mutual benefit and win-win. In the past 40 years, Sino-U.S. economic and trade cooperation has provided a huge market for the two countries and created a large number of employment opportunities. It has also considerably reduced the average expenditure burden on American families.
Minister Fox: Britain supports the 'regular' international trading system.
Negotiations and compromises
Earlier, Chinese Premier Li Keqiang stated at the closing press conference of the National People's Congress on the 20th that Beijing does not want to fight a trade war with the United States. China will continue to reduce the overall tax rate of imported goods, open services and manufacturing industries, and protect intellectual property rights.
Li Keqiang said that it is not good for both sides to win a trade war between China and the United States. There is no winner. Moreover, if the word “hiccups” is used to describe trade, it is against the principle of trade because trade is resolved through negotiations, negotiations, and dialogue. Question, I hope the two parties will remain rational, and don’t use emotions and avoid trade wars.
US trade with China
The "Washington Post" reported on Monday (19th) that the top officials of the United States refer to the list of presidents who submitted to Trump an annual tax value of 30 billion U.S. dollars and impose tax on Chinese imports, but Trump said that he should double the price. , Which covers more than 100 kinds of goods.
Trump believes that this is all because China has stolen from US companies or forced them to submit trade secrets in exchange for related products that entered the Chinese market. He said that this tax will punish China for theft of intellectual property rights, and Create more employment in the United States.
Bloomberg also quoted an unnamed person as confirming the news. The exact scale of taxation may still change before it is announced.
At present, in the face of the US trade giant that is about to fall, Beijing has repeatedly stated that both parties should calmly handle and China is not willing to fight a trade war with the US. It is reported that China and the United States will negotiate trade disputes again in the near future.
Reuters quoted a company official who discussed tariffs with the government as saying that this plan may have a period of public comment, so the effective date will not be very close. This will also allow more time for both China and the United States to negotiate and try to resolve and '301 clause' related to trade disputes.
In August last year, the United States launched a '301 clause' investigation into China, involving whether there was a mandatory technology transfer, theft of intellectual property rights and innovation areas, etc.