China has other options to hurt the United States

Marco Green
July 12, 2018

And now her goods are avoiding the sweeping tariffs enacted by President Trump in his trade war with China. "You tax soybean exports at 25 percent, and you have serious damage to US farmers".

Many others in the USA are already feeling the effects of the tariffs.

China's General Customs Administration did not reply to a fax seeking comments. China's exports to the US are worth only about a quarter of what the USA sends the other way, but experts say Beijing has cards other than tariffs that it can use to retaliate that could disrupt global supply chains and hurt global trade. China swiftly announced retaliatory tariffs on a similar amount of US goods.

The Peak Pegasus caused a stir on Chinese social media as it raced to reach China before the tariffs started on Friday and remained berthed at Dalian and fully laden as of Monday afternoon, according to Eikon data. China's Commerce Ministry is accusing the US of "bullying" and igniting the "largest trade war in history".

Other options include selling USA government debt or disrupting diplomatic efforts over North Korea, although those might also hurt Beijing's interests. Also open to retaliation are services such as engineering and logistics in which the United States runs a trade surplus. All other major governments have approved the deal.

Last year, Beijing destroyed Korean retailer Lotte's business in China after the company sold land in South Korea to the Seoul government for an anti-missile system opposed by Chinese leaders. Farmers worry they won't be able to sell goods to China at the same volume in the past, and that other suppliers will sweep in and take their share of that market for good. "But if Beijing widens its probe to all foreign chipmakers in the country, and uses that as justification for its "Made in China 2025" plan, the ban could ultimately affect Korean companies and give a boost to Chinese local chipmakers".

About a third of apparel and 72 percent of footwear sold in the U.S.is made in China.

China's yuan has sagged against the dollar this year, which might require the central bank to intervene in currency markets.

China and the US are Korea's number one and number two trading partners, and they account for more than a third of Korea's total exports. That could help Beijing win over governments that have criticized Trump for acting outside the World Trade Organization.

Chinese leaders have tried, so far without success, to recruit European and other governments as allies. But political analysts say that would risk setting back work Chinese leaders see as a priority.

Other reports by Click Lancashire

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