Page 25 - ARUBA TODAY

BUSINESS Monday 18 June 2018
A25

China hikes tariffs on US soybeans, electric cars, fish

By JOE McDONALD informal retaliation, which
Associated Press will now start to increase."
BEIJING (AP) — China fired The American Chamber of
back Saturday in a spiraling Commerce had appealed
trade dispute with President to Washington to avoid a
Donald Trump by raising im- tariff hike but said Trump's
port duties on a $34 billion threat has prompted Bei-
list of American goods in- jing to engage in more in-
cluding soybeans, electric tensive negotiations than it
cars and whiskey. had in recent years.
The government said it was Companies also are watch-
responding in "equal scale" ing the fate of ZTE Corp., a
to Trump's tariff hike on Chi- Chinese maker of telecoms
nese goods in a conflict gear that ran afoul of U.S.
over Beijing's trade surplus regulators after it violated
and technology policy that restrictions on exports of
companies worry could American technology to
quickly escalate and chill Iran and North Korea.
global economic growth. Washington rescinded a
China "doesn't want a trade ban on sales of U.S. tech-
war" but has to "fight back nology to ZTE after the com-
strongly," said a Commerce pany agreed to pay a $1
Ministry statement. It said Women interact near a robot designed by Chinese robotics company Pangolin at the Consumer billion fine and hire Amer-
Beijing also was scrapping Electronics Show Asia 2018 in Shanghai, China on Friday, June 15, 2018. ican-picked compliance
agreements to narrow its Associated Press managers. The agreement
multibillion-dollar trade sur- allows Washington to im-
plus with the United States ing July 6 on 545 products China's heavily regulated acquisition of semiconduc- pose an additional $400
by purchasing more Ameri- from the United States in- economy also gives the rul- tor maker NXP in part due million fine or other penal-
can farm goods, natural cluding soybeans, electric ing Communist Party addi- to the tariff conflict. Other ties if ZTE violates the deal.
gas and other products. cars, orange juice, whiskey, tional options for retaliation companies say the ap- Trump is pressing Beijing
The United States and Chi- lobsters, salmon and cigars, by withholding approval for proval process for licenses to narrow its trade surplus
na have the world's biggest according to the Ministry of business activity. has slowed down. with the United States and
trading relationship but of- Finance. Anti-monopoly regulators "China's retaliation will re- roll back its plans for state-
ficial ties are increasingly Most are food and other are believed to have de- main calibrated and large- led development of Chi-
strained over complaints farm goods, hitting Trump's layed announcing a de- ly reciprocal, with President nese global competitors in
Beijing's industry develop- rural supporters hardest. cision on U.S. tech giant Xi Jinping ready to counter technology fields includ-
ment tactics violate its Beijing appeared to be try- Qualcomm's proposed any move by Trump," said ing electric cars, renew-
free-trade pledges and ing to minimize the impact Eurasia Group in a report. able energy, artificial intel-
hurt American companies. on its own economy by "Beijing has a freer hand for ligence and biotech.q
Europe, Japan and other picking U.S. products that
trading partners raise simi- can be replaced by im-
lar complaints, but Trump ports from other suppliers
has been unusually direct such as Brazil or Australia.
about challenging Beijing Chinese regulators also are
and threatening to disrupt considering a tariff hike on
such a large volume of ex- an additional 114 products
ports. including medical equip-
"In this trade war, it's the ment and energy products,
U.S. who is playing the role the Finance Ministry said. It
of provocateur, while Chi- said a decision would be
na plays defense," said the announced later.
Global Times, a newspa- That mirrored the Trump
per published by the ruling administration's announce-
Communist Party. "China is ment Friday of a tariff hike
a powerful guardian and on $34 billion of Chinese
has enough ammunition to goods, also due to take
defend existing trade rules effect July 6, and plans to
and fairness." consider widening it to an
Beijing will impose an addi- additional $16 billion of oth-
tional 25 percent tariff start- er products.