China Retaliates! Beijing Threatens $50 Billion of Tariffs on US


"We urge the United States and China to return to negotiations and produce an agreement that serves the interests of the world's two largest economies". After plunging in early trading, the Dow Jones industrial average ended up rising 231 points, or almost 1 percent, to 24,264.

China retaliated Wednesday against USA plans to apply tariffs on 106 imports by issuing a US$50-billion list of USA goods including soybeans, whisky, beef, industrial chemicals and small aircraft for possible tariff hikes in the escalating dispute.

The tariffs wouldn't kick in right away.

United States companies have until May 22 to raise objections and a public hearing is scheduled for May 15 in Washington, DC.

Presidents Xi Jinping (China) and Donald Trump (US) in Beijing past year.

Al Jazeera's Gabriel Elizondo, reporting from New York City, said that an "opening trade war" is behind the drop in stocks on Wall Street, noting that major companies such as Boeing could be affected. Trump has demanded that China cut the trade gap by $100 billion.

Beijing has options for retaliating against USA companies operating in China.

"What we're talking about on both sides is a fraction of 1 percent of both economies", Ross said.

Since the agreement, security experts have observed a significant decline in Chinese cyber-enabled intellectual property theft from USA companies, and the pact has been largely cheered as a diplomatic accomplishment. It's part of the process. "I don't care what the President tweets, no one wins". There are carrots and sticks in life. Cutting deficit requires efforts from both the sides.

China stepped up its trade fight with the targeting high-value American exports, from airplanes to soybeans.

Trump has criticised China for its large trade surplus with the USA, and has demanded a US$100 billion (NZ$137 billion) reduction in the trade imbalance, but the tariffs appear to instead target China's innovation programme.

Industrial stocks appeared to be the hardest hit.

General Motors Co (GM.N), which imports the Buick Envision crossover from China, said on Wednesday it is "too early" to say how the Trump administration's proposed tariffs on Chinese-built vehicles will impact its future production plans for that vehicle.

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The incident was also captured on a CCTV, the video of which has gone viral on social media. "The deceased include two women". The incident happened almost a month after a two-storey building was collapsed in Madhya Pradesh's Shajapur district.

"The trade implications between the USA and China are far from complete".

Companies and economists have expressed concern improved global economic activity might sputter if other governments are prompted to raise their own import barriers. China threatened to retaliate with its own 25 per cent levy on around US$50 billion of U.S. imports including cars, chemicals, soybeans and aircraft.

China on Wednesday issued a list of more than 100 US goods, amounting to $50 billion in imports, targeted for a possible 25 percent tariff hike.

Stocks are opening sharply lower on Wall Street as an escalating trade dispute between the US and China poses a threat to global economic growth and corporate profits.

"American farmers are waking up this morning to the prospect of a 25 percent tax on exports that help sustain their farming operations", said former U.S. Sen. The Russell 2000 index of smaller-company stocks rose 8 points, or 0.5 percent, to 1,520. -China Business Council, an industry group.

Jim Boyce, a Beijing-based wine consultant who writes the blog Grapewallofchina, said while there were concerns that the duties would make USA wine less cost-competitive, the greater worry was over the image the trade war would generate for US goods.

Industrial companies were rocked. It calls for creating global leaders in electric cars, robots and other fields. Beijing's list reflects its sensitivity to American complaints that it pressures foreign companies to hand over technology.

A slew of subsidiaries of Aviation Industry Corp of China, known as AVIC, and the Commercial Aircraft Corp of China, or COMAC, could also feel the pinch.

Mr Wang defended Made in China 2025, saying it was "transparent, open and non-discriminatory" and foreign companies could participate. China is the world's largest soybean importer, and buys about 60 per cent of the USA soy crop, making it, at US$14 billion (NZ$19.2 billion), the most valuable United States agricultural export to China. U.S. beef, corn and cotton were also on the list.

Experts say that Chinese hackers, widely viewed as among the most sophisticated, have shifted their operations so as not to explicitly violate the agreement while still maintaining a presence in US networks. "I get that. But don't overreact", Kudlow said on Fox Business.

The Global Times newspaper, published by the ruling party and known for its nationalistic tone, suggested that further retaliatory action might target service industries in which the United States runs a trade surplus.

"The date of implementation will depend on when the USA government imposes the tariffs on Chinese products", it said.