Why China May Hit Hollywood, North Korea Diplomacy In US Trade War

Daniel Fowler
June 20, 2018

"We want to be the smart country" Trump said. Late Monday, Trump also announced he might pursue $200 billion more in tariffs on Chinese goods, though it was unclear whether the list would include more chips or computing products that might impact Intel.

"Risking a trade war with more tariffs will only invite more retaliation that will cause significant harm to the USA economy", said the group, urging the administration instead to "work with our allies and place coordinated pressure on China to end their harmful trade and investment practices". That would bring the total number of Chinese goods subject to tax to $450 billion, nearly 90 percent of all the goods the USA imported from that country a year ago.

The aggregate United States sales balance with China increased to a $7 billion in surplus in 2016 from a $30 billion deficit in 2015, and further increased to a $20 billion in surplus in 2017.

U.S. Trade Representative Robert Lighthizer speaks at the 9th China Business Conference at the U.S. Chamber of Commerce in Washington, May 1, 2018. Jimmy Goodrich, vice president of global policy for the Semiconductor Industry Association, said chipmakers could be forced to pay tariffs on their own products simply for doing a small portion of the work in China.

If the United States goes ahead with the new $200 billion tariffs, they are more likely to be directly felt by individuals than the previous round. What's more, unlike Trump's other trade spats, there are (arguably) real national interests at stake in his showdown with China.

China bought American goods worth $153.9 billion previous year, while exports to the United States totaled $429.8 billion, according to customs data.

He condemned China's "unfair practices related to the acquisition of American intellectual property and technology" and added: "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong".

Combining trade and foreign direct investment, the United States actually ran a surplus against China.

Grieve: Brexit amendment will not bring government down
The peer said he was asking the Lords to allow MPs to vote on what Mr Grieve believed was agreed with the Government. But pro-Brexit MP Nigel Evans said he was "staggered" by Mr Grieve's remarks.

He said China's latest action clearly indicated its determination to keep the U.S. at a permanent and unfair disadvantage, which is reflected in the massive Dollars 376 billion trade imbalance in goods.

Shares of large US companies with significant overseas business were hit especially hard. The Dow Jones Industrial Average and the S&P 500 also fell along with commodities.

Hong Kong's Hang Seng Index (HSI) closed down 2.76 percent, while Japan's Nikkei lost 1.77 percent and Korea's Kospi Index down 1.54 percent. In Europe, Germany's Dax index and France's Cac 40 were both about 1.5% lower in afternoon trading.

In Beijing, China's Commerce Ministry responded swiftly to Trump's latest threat, warning that if the USA imposed fresh tariffs, China would have to adopt "comprehensive measures combining quantity and quality to make a strong countermeasure". It called Mr. Trump's tariff threat an "act of extreme pressure and blackmail" that "deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the global community".

Trump's latest comments came hours after US Secretary of State Mike Pompeo accused China of engaging in "predatory economics".

"Chinese leaders over these past few weeks have been claiming openness and globalization. But it's a joke", Pompeo said.

In a separate issue Monday evening, Senate Republicans pushed back against the Trump administration's lifting of sanctions on Chinese telecom firm ZTE, reinstating the penalties as part a defense bill.

Miffed by Pompeo's comments, China hit back saying that U.S. is making allegations to cover up its unilateral protectionist policies.

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