In a development that is threatening the entire global trade, United States today imposed 25 percent tariff worth $ 50 billion on more than 1,000 Chinese made products – from semiconductors to lithium batteries – focused mainly on high tech industries. Chinese Authorities have responded with a condemnation and an assurance that it will respond to the US tariffs on an equal scale.
“The Chinese side strongly condemns and firmly opposes the unfounded Section 301 investigation and the proposed list of products and tariff increases”, according to the statement released by Embassy of China in US.
United States published a list of 1,300 Chinese products it plans to hit with a 25 percent tariff focused mainly on tech sector amongst others. US Authorities mentioned that the tariffs have come as a result of China’s outright ignorance of Intellectual Property Rights despite numerous protests from US Government.
China has invited immense scrutiny and scorn during the last few years as western leaders blame China for ignoring the Intellectual Property Rights in technology and pharmaceutical sectors. China has a booming market for counterfeit US goods.
China has warned that these tariffs are not beneficial to any country but also detrimental to global trade. China had recently slapped tariffs on 128 US goods at more than 25 percent as a retaliation of US tariff on Steel and Aluminum imports from China. Global leaders and economists have warned that the escalating war between the two global giants is extremely detrimental to global trade.
According to Chinese Authorities, “such unilateralist and protectionist action has gravely violated fundamental principles and values of the WTO. It serves neither China’s interest, nor U.S. interest, even less the interest of the global economy”.
Economists had previously warned the Trump administration's move to slap China with the tariffs could prompt Beijing to retaliate and lead to higher prices for American consumers.
China while announcing its retaliation intentions reiterated the need for both parties to sit together and work out with a sense of long term picture in mind. US Business Groups have also urged both sides to try and resolve the issues through talks, raising concerns that the tariffs could hurt the US economy and consumers the most.
“We hope that the U.S. side, with sense and long-term picture in mind, refrain from going further down the wrong path.”