Analysts on looming trade tariff war between China and US
(5 Jul 2018) The impending onset of higher US tariffs on Chinese imports has raised concern among economists over its potential impact on Chinese firms and the economy. A decline in the stock market and expressions of concern among academics point to an underlying anxiety over the trade friction that contradicts Beijing's confident posture. Beijing has said if the U.S. follows through on its threat to impose 25 percent duties Friday on 34 billion US dollars in Chinese products, it will respond in kind. Erlend Ek, a Beijing-based analyst who tracks Chinese policies said some export-dependent cities may be hit the hardest, but added authorities are drawing up measures to prevent a full blown crisis. According the Ek, the more serious risk scenario is if the trade war between the world's two largest economies prolongs and draws in other countries or trade blocs such as the European Union, that could seriously disrupt global supply chains and potentially affect China's national security. Yu Zhi, a professor at Shanghai University of Finance and Economics, said Beijing may have miscalculated the pain the tariffs would inflict on the country's exporters' already razor-thin margins. The impact of the first stage of tariffs that target mostly Chinese technology exports could be manageable, Yu said, but if Trump imposes the full scope of tariffs he has threatened to use, it would decimate the profits of the bulk of Chinese exporters and lead to selloffs in stock markets. All told, U.S. President Donald Trump has said he is prepared to slap taxes on up to 450 billion US dollars in Chinese imports, or nearly 90 percent of the goods China shipped to the United States last year. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: / ap_archive Facebook: / aparchives Instagram: / apnews You can license this story through AP Archive: http://www.aparchive.com/metadata/you...
