The trade friction between China and the US entered a crucial week. On the middle of the night of April 1, China announced that it imposed a tariff of 15% or 25% on 128 products imported from the United States. This was in response to the US’s previously imposed tariffs on imported steel and aluminum products. The formal counterattack of the investigation.
According to the U.S. President Trump's memorandum on the imposition of tariffs on Chinese goods on March 22, the U.S. Trade Representative Office will publish a list of product proposals before this Friday.
The impact of China’s counterattack was first reflected in the US stock market. On April 2, the S&P 500 Index closed down 58.99 points, or 2.23%, to 2581.88 points; the Nasdaq Composite Index fell 193.30 points, or 2.74%, to 6870.12 points. The Dow Jones index closed down 458.90 points, or 1.90%, to 23,644.19 points.
According to a report by the US financial analyst FactSet, China, as the world’s second-largest economy, is the second largest trading partner of the United States after the European Union. Under the influence of Sino-US trade friction, 20 companies in the US S&P 500 Index A total of 158.4 billion U.S. dollars in business in China will be affected.
As a financial data analysis agency with Bloomberg and Reuters Townsend, FactSet pointed out in its research report that among the above 20 companies, technology companies will bear the brunt of negative impact. Apple’s sales in China in 2017 were as high as $44.76 billion. , accounting for 19.6% of the company's total annual sales; chip company Intel's China sales of 14.79 billion US dollars, accounting for 23.6%; Qualcomm accounted for 65.4% higher; Broadcom accounted for 53.7%; Micron Technology accounted for 51.1%.
If the 'trade warfare' kicks off, U.S. industrial companies are also hardly affected. Boeing aircraft sales in China account for US$11.91 billion, accounting for 12.8%; P&G sales in China are US$5.2 billion, accounting for 8%. Sales in China accounted for 4.23 billion yuan, accounting for 12.4%. In addition, Starbucks' sales in China was US$4.51 billion, with business accounting for 20.2%.
A recent research report released by Deutsche Bank also pointed out that the interests of U.S. companies in China are much more than the U.S. exports to China. Once Sino-U.S. trade frictions increase, U.S. companies’ interests in China will be seriously affected.
According to Deutsche Bank, GM and Apple have sold more cars and mobile phones in China than in the United States. In 2017, GM sold 4 million vehicles in China, which exceeded the sales volume of 3.6 million vehicles in the United States. As of 2016, the use of Apple mobile phones in China reached 310 million, which is already more than twice the amount of Apple mobile phones used in the United States. However, these products are not reflected in the trade data of the two countries, because these products are all produced by the United States. Business subsidiary in China production and sales.