China has begun imposing new tariffs on a range of American agricultural products, escalating trade tensions between the two largest economies in the world.
This was reported by The New York Times, writes UNN.
Details
As of today, the Chinese government has started to impose a 15% tariff on imports of chicken, wheat, and corn, as well as 10% on soybeans, pork, beef, and fruits. A representative of the National People's Congress, China's annual legislative body, stated that the latest tariffs from U.S. President Donald Trump "have undermined the security and stability of global industrial and supply chains."
The Chinese government also announced that it is blocking 15 American companies from purchasing Chinese products unless they obtain special permission from the drone manufacturer supplying products to the U.S. military. It stated that it is blocking another 10 American companies from doing business in China.
China is also suffering from a number of economic problems, including weak foreign investment and the fallout from the real estate market crisis. Nevertheless, it is reported that China has other tools to manage the ongoing trade dispute.
In the past, it lowered taxes for Chinese companies exporting goods to the U.S., allowing them to reduce prices and mitigate the impact of U.S. tariffs.
Chinese companies have also shifted the final assembly of their products to countries like Vietnam and Mexico, with which the U.S. has had relatively free trade relations in recent decades. But Trump has tried to close this loophole by threatening Mexico with tariffs.
Reminder
Chinese Minister of Commerce Wang Wentao stated the country's readiness for a trade war with the U.S. over new tariffs. In particular, it was reported that China has set a target for economic growth at 5% and promises to protect its interests.