Published: Sat, April 07, 2018
Money | By Ethel Goodwin

China holding Treasuries 'nuclear option' open in trade war with US

China holding Treasuries 'nuclear option' open in trade war with US

China's economy has become less dependent on selling goods overseas in recent years, which is likely to blunt the effect of the United States tariffs, according to analysts for S&P Global Ratings.

The list of USA goods affected by Chinese tariffs reportedly includes vehicles, chemicals, some types of aircraft, soybean, corn, and other agricultural products.

Responding to the USA government's plan to go ahead with its decision to impose higher tariffs on $50 billion of Chinese industrial and hi-tech products, China unveiled a list of 106 products imported from the U.S. that would be subjected to additional tariffs of 25 per cent including soybean, automobiles, etc.

The EU pig sector could benefit from the US-China trade war, according to AHDB Pork.

The latest ones haven't gone into effect yet, and with any luck, both sides will find a way to defuse the conflict before it really gets going.

The White House said its new plans were a response to unfair Chinese intellectual property practices, such as those that pressure U.S. companies to share technology with Chinese firms.

President Donald Trump persists in using a phony number to justify his market-shaking trade actions against China.

"Look, China created this problem, not president Trump". So who the heck knows what he's actually trying to do.

"Instead of targeting fairly traded United States exports, China needs to stop its unfair trading practices which are harming USA national security and distorting global markets".

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"This is a sequence of events that have evolved", Monte Peterson, U.S. Soybean Export Council.

"They have been engaged in repeated non-market behaviour for over a decade". I can imagine a significant backlash if these tariffs come into effect and goods and products that we buy in United States become much more expensive.

No formal negotiating sessions have been set, the official said.

While China is playing "a hard card", "they know the U.S. soybean community will be very scared, and they are powerful towards Trump", Ek said.

Sen. Charles Grassley said he agreed with getting tough with China but Mr. Trump's strategy puts his constituents in the cross-hairs.

Edited excerpts: vernight we saw a big development. "In fact, China has imported more US soy on an annual basis than all other countries combined", said Peterson.

He added that the U.S. Trade Representative had determined that China "has repeatedly engaged in practices to unfairly obtain America's intellectual property". In our opinion, the appropriate response from China would be to change its behaviour. Over the last five weeks stocks have plunged numerous times as investors reacted to tariff developments with shock and concern that an increase in protectionism will hurt worldwide trade and company profits.

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