Trump to impose 60% tariffs on China? China's latest response!
On November 22, The State Council Information Office held a regular briefing on the policies of The State Council. Wang Shouwen, International Trade Negotiator and Vice Minister of the Ministry of Commerce, and officials from the Ministry of Foreign Affairs, the Ministry of Industry and Information Technology, the People's Bank of China and the General Administration of Customs introduced relevant policies and measures to promote the steady growth of foreign trade and answered questions from journalists.
When asked by a reporter, Trump said during his campaign for the US presidency that he planned to impose 60 percent tariffs on China. How much impact do you think this will have on Chinese exports? What do you think of this phenomenon?
In this regard, Wang Shouwen said that the Chinese economy has shown very strong resilience, great potential and full of vitality. We are building a new pattern of development with the domestic cycle as the mainstay and both domestic and international cycles reinforcing each other. We are capable of defusing and resisting the impact of external shocks. At the same time, history has shown that a country's tariffs on China do not solve the country's own trade deficit; on the contrary, it drives up the price of the country's imports from China and from other countries. Because tariffs are ultimately paid by consumers and end users in the importing country, it inevitably leads to an increase in the price paid by consumers, the cost of users is increasing, and the rise in prices leads to inflation.
According to Beijing Daily on November 21, the China Public Diplomacy Association recently held the "Linjia 7 Salon" in the Xianhe Hall of the Beijing International Club, inviting well-known experts to make keynote speeches on the package of incremental policies and interact with Chinese and foreign media journalists. Ding Yifan, a researcher at the Institute of World Development at the Development Research Center of The State Council, said the tariffs would do great damage to the United States.
Trump has said he will impose 60 percent tariffs on Chinese products after taking office again. Ding said that the tariff war launched during Trump's first term has proved largely ineffective, because China's trade surplus with the United States has remained high for many years since, reaching $500 billion to $600 billion annually, indicating that the US market has a lot of rigid demand for Chinese manufacturing.
Ding Yifan said that according to the research of US economists on the cost of Trump's tariff war, US consumers and importing enterprises actually bear 92% of the cost of the US tariff increase of 20% to 25% on China, and Chinese exporters only pay 8% more, and the impact on China is indeed very small.
In response to Trump's second threat to impose 60% tariffs on China, a quantitative study recently published by the well-known Peterson Institute for International Economics in the United States shows that the United States will still be the biggest victim of Trump's new round of tariffs. Nearly 60% of China's exports to the United States are intermediate products rather than final consumer goods, and many downstream enterprises in the United States have a huge demand for these intermediate products in the industrial chain. Without intermediate goods imported from China, American companies will face widespread unemployment, because these Chinese products are difficult to find substitutes in terms of price and quality, and will cause huge disruptions to the American economy.
Ding Yifan said that the 60 percent tariff will also bring chaos to the global industrial chain. The US attempt to ban the sale of chips and chip equipment to China has caused chaos in the industrial chain, because chips are a very international industry. If the 60 percent tariff prevents Chinese products from entering the U.S. market, even the U.S. military industry will be affected.
He cited that the CEO of Raytheon, one of the four largest arms suppliers in the United States, has testified before the US Congress and made it clear that Raytheon's products have more than 2,000 suppliers in China and it is impossible to decouple from China. "Trump didn't even think about it when he proposed a 60 percent tariff. If all are implemented, the damage to the United States will be great."
Ding Yifan said that the Peterson Institute for International Economics believes that the additional tariffs will reduce the US economic growth by more than 1 percentage point, while the actual potential economic growth rate of the United States is more than 2%, and the loss caused by the 60% tariff will be unbearable for the US economy. Trump hopes to create manufacturing jobs for the United States with tariffs, but if the entire industrial chain is disrupted, jobs cannot be created. Peterson Institute for International Economics believes that if the new US administration imposes 60% tariffs on China, it will cause the US economy to collapse in less than a year. The Group's friendly cooperation began in 1984 and has built a total of 154 ships of various types. This signing continues the in-depth cooperation between Dalian Shipbuilding and COSCO Shipping Energy in the field of oil tankers, the two sides will be in line with the principle of "sincere cooperation, complementary advantages, equal priority, mutual benefit and win-win", give full play to their respective advantages, actively practice the national strategy of "national cargo, national shipping, national production", and provide a solid guarantee for the implementation of China's energy strategy.
When asked by a reporter, Trump said during his campaign for the US presidency that he planned to impose 60 percent tariffs on China. How much impact do you think this will have on Chinese exports? What do you think of this phenomenon?
In this regard, Wang Shouwen said that the Chinese economy has shown very strong resilience, great potential and full of vitality. We are building a new pattern of development with the domestic cycle as the mainstay and both domestic and international cycles reinforcing each other. We are capable of defusing and resisting the impact of external shocks. At the same time, history has shown that a country's tariffs on China do not solve the country's own trade deficit; on the contrary, it drives up the price of the country's imports from China and from other countries. Because tariffs are ultimately paid by consumers and end users in the importing country, it inevitably leads to an increase in the price paid by consumers, the cost of users is increasing, and the rise in prices leads to inflation.
According to Beijing Daily on November 21, the China Public Diplomacy Association recently held the "Linjia 7 Salon" in the Xianhe Hall of the Beijing International Club, inviting well-known experts to make keynote speeches on the package of incremental policies and interact with Chinese and foreign media journalists. Ding Yifan, a researcher at the Institute of World Development at the Development Research Center of The State Council, said the tariffs would do great damage to the United States.
Trump has said he will impose 60 percent tariffs on Chinese products after taking office again. Ding said that the tariff war launched during Trump's first term has proved largely ineffective, because China's trade surplus with the United States has remained high for many years since, reaching $500 billion to $600 billion annually, indicating that the US market has a lot of rigid demand for Chinese manufacturing.
Ding Yifan said that according to the research of US economists on the cost of Trump's tariff war, US consumers and importing enterprises actually bear 92% of the cost of the US tariff increase of 20% to 25% on China, and Chinese exporters only pay 8% more, and the impact on China is indeed very small.
In response to Trump's second threat to impose 60% tariffs on China, a quantitative study recently published by the well-known Peterson Institute for International Economics in the United States shows that the United States will still be the biggest victim of Trump's new round of tariffs. Nearly 60% of China's exports to the United States are intermediate products rather than final consumer goods, and many downstream enterprises in the United States have a huge demand for these intermediate products in the industrial chain. Without intermediate goods imported from China, American companies will face widespread unemployment, because these Chinese products are difficult to find substitutes in terms of price and quality, and will cause huge disruptions to the American economy.
Ding Yifan said that the 60 percent tariff will also bring chaos to the global industrial chain. The US attempt to ban the sale of chips and chip equipment to China has caused chaos in the industrial chain, because chips are a very international industry. If the 60 percent tariff prevents Chinese products from entering the U.S. market, even the U.S. military industry will be affected.
He cited that the CEO of Raytheon, one of the four largest arms suppliers in the United States, has testified before the US Congress and made it clear that Raytheon's products have more than 2,000 suppliers in China and it is impossible to decouple from China. "Trump didn't even think about it when he proposed a 60 percent tariff. If all are implemented, the damage to the United States will be great."
Ding Yifan said that the Peterson Institute for International Economics believes that the additional tariffs will reduce the US economic growth by more than 1 percentage point, while the actual potential economic growth rate of the United States is more than 2%, and the loss caused by the 60% tariff will be unbearable for the US economy. Trump hopes to create manufacturing jobs for the United States with tariffs, but if the entire industrial chain is disrupted, jobs cannot be created. Peterson Institute for International Economics believes that if the new US administration imposes 60% tariffs on China, it will cause the US economy to collapse in less than a year. The Group's friendly cooperation began in 1984 and has built a total of 154 ships of various types. This signing continues the in-depth cooperation between Dalian Shipbuilding and COSCO Shipping Energy in the field of oil tankers, the two sides will be in line with the principle of "sincere cooperation, complementary advantages, equal priority, mutual benefit and win-win", give full play to their respective advantages, actively practice the national strategy of "national cargo, national shipping, national production", and provide a solid guarantee for the implementation of China's energy strategy.
