The Chinese government has made its decision after days of urging the US government to enter negotiations and “meet China halfway” over tariffs imposed on the country by the Donald Trump-led administration, to avert possible retaliatory actions.
In a recent development, China vowed to implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars that are usually imported from the US with effect from next Monday.
The time-space means there is still time for the two world’s largest economies to step back from observing a trade war.
According to the White House, the leaders of the two countries have scheduled a call for later this week and there are signs, despite Tuesday’s announcement, that China is ready for negotiation.
China’s retaliation moves are limited in scope compared to Donald Trump’s levy of 10% on all Chinese goods heading to the US. While America is the biggest exporter of liquid natural gas across the world, China accounts for only around 2.3% of those exports and its major car imports are from Europe and Japan.
President Donald Trump asserted he had a “very good” phone call with President Xi days before his inaugural ceremony which saw the highest-level Chinese officials ever to be dispatched to such an event. He has also suggested that he hopes to work with Xi on taking necessary actions in the Russia-Ukraine war which is also familiar territory for both leaders.
(BBC)
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