But history suggests China will reply in kind and hike tariffs on a range of US exports that will raise the stakes once again in their long-running tit-for-tat trade war.
Already a subscriber?China’s response to Joe Biden’s increased tariffs on its green energy exports was executed this week with all of Beijing’s usual rhetorical flourish.showed “some people in the United States have reached the point of losing their minds in order to maintain their unipolar hegemony”.
And history suggests the world’s second-largest economy will reply in kind and hike tariffs on a range of US exports that will raise the stakes once again in their long-running tit-for-tat trade war., and in a targeted way. For example, China has a firm grip on tungsten, rare earths and vanadium supply, which are all essential for heavy industry and clean energy for the US, Europe and Japan.
At the same time, they also note that developed markets will struggle without China’s manufacturing strength and its huge pools of capital. “That would be tough,” said Frederic Neumann, HSBC’s chief Asia economist.China has good reason to be cautious when it comes to restrictions on its clean energy export channels. Its economy has struggled as the growth engines of property and infrastructure have run out of steam.
As production scaled up in China, there was a hunt for new markets and relatively inexpensive electric BYD sedans began appearing on German autobahns, and were competitive with US premium EV maker Tesla. Even EV-resistant Australians started choosing to drive Chinese electric vehicles. “They’ve created a pool of economies that are friendly from a geopolitical stance and also help them to keep growing their exports,” John Stavliotis, emerging markets portfolio manager at Antipodes, says. “Tariffs are definitely an issue, but they’ve set themselves up to export elsewhere.”
A tariff war between the US and China had already started under former president Donald Trump. When Biden announced the tariff hike this week, less than 2 per cent of Chinese EVs were sold in the US.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US China trade: Biden increases tariff regime on $27b worth China importsFollowing a four-year review on trade with China, US President Joe Biden will not only keep the tariffs put in place by Donald Trump, but ratchet up others.
Read more »
Philippines accuses China of damaging its vessels in disputed South China Sea shoalThe Philippines accuses China's coast guard of harassing and damaging two of its boats in a disputed area of the South China Sea, rejecting Beijing's position that it had expelled those vessels from the hotly contested shoal.
Read more »
China's coast guard confronts Japanese politicians in disputed East China Sea areaChina's coast guard confronts Japanese lawmakers in waters claimed by both countries in the East China Sea, which is the latest in a series of maritime disputes involving China and its neighbours.
Read more »
‘Stop shifting blame’: Australia, China trade barbs over helicopter incidentAs China doubled down on its criticism of Australia, Anthony Albanese accused Beijing of offering a contradictory rationale for the aerial interception.
Read more »
‘Stop shifting blame’: Australia, China trade barbs over helicopter incidentAs China doubled down on its criticism of Australia, Anthony Albanese accused Beijing of offering a contradictory rationale for the aerial interception.
Read more »
‘Stop shifting blame’: Australia, China trade barbs over helicopter incidentAs China doubled down on its criticism of Australia, Anthony Albanese accused Beijing of offering a contradictory rationale for the aerial interception.
Read more »