China figured out carrots work as well as sticks


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Since the start of President Trump’s trade war, China has retaliated against US tariffs by raising tariffs on US goods. Less well known is that China has also been lowering rates for everyone else, putting US companies at an even greater disadvantage when trying to sell to China’s 1.4 billion consumers. Companies in the United States and elsewhere used to be on a level playing field, facing an average Chinese tariff of 8.0 percent. Now, there is a 14 percentage point difference between the average Chinese tariff US exporters face versus all other exporters. Some US goods are facing even wider differences in duties, like soybeans, farm and fish products, and certain manufacturing products.

One thought on “China figured out carrots work as well as sticks

  1. Gwailo Joe says:

    China has to take necessary counter-measures to the latest U.S. tariffs on $300 billion of Chinese goods, the finance ministry said on Thursday. The ministry also said the U.S. tariffs violate a consensus reached by leaders of two countries and get off the right track of resolving disputes via negotiation. https://www.cnbc.com/2019/08/15/china-says-has-to-take-counter-measures-to-latest-us-tariffs.html

    As financial markets tumbled again Wednesday over concerns about a trade war with China and unrest in Hong Kong, President Donald Trump took to Twitter to request a one-on-one meeting with Chinese President Xi Jinping. “I have ZERO doubt that if President Xi wants to quickly and humanely solve the Hong Kong problem, he can do it,” Trump said of escalating unrest in Hong Kong over Beijing’s threat of a crackdown on protests there. “Personal meeting?”

    Despite few signs of progress in negotiating a new trade agreement with China Trump also claimed [@ 12:21 PM – 14 Aug 2019] “We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast. Now too slow to cut….” [continues] “..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!” https://twitter.com/realDonaldTrump/status/1161719408202584064

    ‘Why I translate all of Trump’s tweets into Chinese” (BBC News, China service 9/9/19) https://www.bbc.com/news/world-us-canada-49092612

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