Within a few hours of Taipei -President Donald Trump’s President Donald Trump in China, Canada and Mexico, his Canada and Mexico counterparts counterattacked with his own collection of US products.
The response from China, the largest strategic rival in Washington, was particularly reduced.
The Ministry of Commerce in China said that it was necessary to take measures to protect the rights and profits firmly because no specific tariffs were announced in Sunday response.
The ministry also stated that Washington has denied the appointment of a new judge, and has been claiming a World Trade Institute of Trade Customs since the appeal organization has not been working in the latter half of 2019.
Beijing’s relatively calm reaction comes due to a surprisingly friendly start under Trump’s second administration.
At the Davos Economic Forum on January 23, Trump, who was asked about the first call with Chinese leader Xi Jinping, believed that the country had a “very good relationship.”
In an interview with the Fox News aired on the same day, Trump stated that China did not impose “rather” tariffs “and expressed his interest in reaching a transaction with XI.
Julian Chime, an expert in the Hong Kong University’s International Economic Law, says that Trump and Xijin are looking at the opportunity for trading.
“Not because the larger goals are aligned, both work in a world where political and economic leverage is constantly being re -adjusted, and customs duties are the same as changing trade balance. Yes, a wider geopolitical climate is often given short -chaira told Al Jazeera.
“This is particularly relevant, given that China has historically responding with accuracy with a wide range of retaliation in the United States, not as possible, while avoiding escalations as much as possible. “
Trump’s 25 % tariffs on Canada and Mexico products have a significant impact on three countries, which have been operated under the Self -Trade Agreement since NAFTA’s signature in 1994, but China. Is working on tax. Export since his first term.
Trump’s 10 % tariff announcement is not a 60 % tariff that threatened to impose Chinese products during the re -election campaign.
According to Debola Elms, a trade policy officer of the Singapore Hinrich Foundation, this measure, which has been added to existing tariffs, has reached the average tariff of Chinese products from about 20 % to 30 %.
Elms stated that the decision of Beijing to go to the WTO was allowed to controvers the “principle” of world trade.
“Participation in the WTO was challenging to China because of many economic reforms and significant reductions in tariff rates,” Elms told Al Jazilla.
“However, China continued to argue that it was worth it because it was a considerable advantage of being part of a global transaction system. I think it’s the reason for relying on WTO. “
Steve OKUN, the founder and CEO of Singapore’s Apac Advisor, said that Beijing could be spending time before other measures were developed.
“It’s the opening salvo,” Okun told Algerazilla.
“It has not been affected by our actions. The Chinese had to do something. “We can show that we are in accordance with the rules, the United States is not so, it gives them the time to understand what to do next.”
The Chinese Embassy of Washington DC did not respond immediately to comment requests.
Despite the slower economy, Beijing is more powerful to negotiate with the United States than Canada and Mexico.
China’s gross domestic product (GDP) is about $ 19 trillion compared to the $ 30 trillion US GDP. Canada and Mexico GDP is much smaller, about $ 2.1 trillion and $ 1.8 trillion, respectively.
The Peterson Economic Research Institute estimates that the tariffs in Mexico and Canada can wipe $ 200 billion from the US economy in the next four years.
According to an analysis of the institute, the tariff on products in China may further reduce the US economy by $ 550 billion.
Calsten Holtz, a professor at the Hong Kong Science and Technology University of Science and Technology, considers that Chinese policy proprieters are facing higher inflation, and Trump may have crossed his authority. He concluded that tariffs would harm the United States more than China. countermeasure.
“I don’t hurry for economic superpower to easily trigger myself,” Holtz told Al Jazira. “If Trump escalates his war in PRC, you can take important retaliation measures.”
On Monday, the Wall Street Journal, which quotes anonymous information sources, reported that Beijing would propose a revival of a trade contract sealed in 2020 during the first term of Trump.
Under the conditions of the contract, China agreed to purchase US products worth $ 200 million in two years.
However, according to the Peterson Economic Research Institute, the agreement was confused by the COVID-19 pandemic, and China only met 58 % of its obligations.
Chaisse stated that a similar transaction could be the ultimate goal of the United States and China.
“Compared to 2 % tariffs on imports from Canada and Mexico, the lower the tariff rate in China suggests strategic calculations, not purely economical calculations,” he said. 。
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