From today, 10% US tariffs on almost 6,000 Chinese goods from handbags to textiles worth $200bn will be effective. With almost half of Chinese products being subjected to tariffs, China has decided to fight back by imposing 5–10% tariffs on US goods worth $60bn. The Hebei Huayang Steel Pipe producers, a little outside of Beijing, have started seeking other clients even prior to imposition of the most recent round of tariffs. This was a good step as it would have fallen under the category of goods subjected to tariffs.
The company has, as of now, stopped expanding into American market stating that it has several other options open for consideration. Sales manager Steven Yue did not seem to be much worried about holding off on expansion into the US market as they have many other options. On being questioned further about the situation, he retorted back saying that this trade war would have more negative impacts on the US than it would have on China. It is because US-made products have huge markets in China which could be affected by the tariff-imposition. This could also be bad news for investments and interests of the US enterprises in China.
Wang Haiyou pointed out that companies as wide-spread and huge as Boeing and Walmart are immensely successful in China with the former selling the maximum number of airplanes in China than any other country across the globe and the latter producing more goods from China than any other nation in the world. On being told that China had violated the rules of World Trade Organization, Mr. Haiyou said that America gets a lot more complaints than China in the WTO. The US president’s strategy of imposing tariffs has given other trading partners of China, who were deceived by them, the courage to voice their complaints more clearly.
China’s lack of transparency when it comes to market opening might very well be the root cause of this trade war, says European Chamber of Commerce in China. This could be a bad time for China with its economy slowing down after years of marvelous growth. Chinese students vocally stated that their nation will withstand the war and rise stronger than before. Although Global Times outlined that Americans believe that China has stolen their experience for the sake of their own modernization, citizens of China believe that their country’s raging success is causing America to grow jealous and impose rules to hinder that. But the Chinese are not going to back down and are getting ready for what will be a long battle.