US-China trade war

US-China trade war

The trade war between the US and China has been an escalating series of tit-for-tat tariffs, and then some.

Trump trade policies may have been bad for America
When the US-China trade war kicked off in 2018, Xu Yanlin, a senior sales manager for a Guangzhou company selling clothes and household items on Amazon, worried that her US market would collapse. But instead, her online store thrived, as the firm jacked up prices and passed Donald Trump’s trade war tariffs on to customers. “The tariffs were absorbed by American consumers themselves. We have generally increased the unit price this year. For example, a design for which we charged $16 before is now priced at about $19.99,” said Xu. Some 6,959 miles away in Phoenix, Arizona, Barry Vogel, CEO of industry group Audio & Loudspeaker Technologies International, said the tariffs were a “double whammy
China’s top private businesses hurt by the trade war
Every Tuesday and Thursday, Inkstone Index features one important number about China to give you insight into the rising power. 36%: The share of private companies in China that said they were hurt by the US-China trade war. More than a third of top Chinese private companies reported feeling the burn from the US-China trade war, according to a survey released by the All-China Federation of Industry and Commerce, a chamber of commerce in China. 152 of the 500 largest companies in China said the trade war had negatively affected their business while 246 said it had not. 102 companies did not answer that particular question. China has routinely downplayed the domestic effect of the trade war at
What four years of Trump meant for manufacturers
When Donald Trump was elected US President in 2016, almost all of M Group Corporation’s high-end hotel furniture fittings were made in China. Now, after four years of being pummeled by anti-dumping duties, tariffs and extreme political volatility, about half are made in China, with the balance of production scattered around Vietnam, Malaysia and Eastern Europe. “We eventually came up with a solution, and the only real winner was my frequent flier program,” said the American company’s president H David Murray. “My eldest son and I traveled just about all over the world to find resources.” First Trump slapped 341% anti-dumping duties on Chinese-made quartz worktops, then followed up with tari
Trump and Biden both vow to reduce reliance on China, but methods will be ‘night and day’
In his Mexico City office, while the coronavirus pandemic has raged, Samuel Campos’s phone has been ringing off the hook with firms looking to move their manufacturing to Mexico. “Since the trade deal this year, I think our volume is up around 30% to 40%,” said Campos, managing director at commercial real estate advisory firm Newmark Knight Frank, pointing to the revamped US-Mexico-Canada Agreement that went into effect in July. The callers used to be mainly European and American, looking to escape China to avoid trade war tariffs or to be closer to their consumer markets. But in recent months, Chinese firms have been calling too – all keen on managing the costs and volatility that come with
How China braces its economy for a more hostile world
Every Tuesday and Thursday, Inkstone Explains unravels the ideas and context behind the headlines to help you understand news about China. Four decades after China opened its doors and put itself on a path to becoming the world’s factory, a pandemic has exposed how much industralized nations have grown to rely on Chinese imports, from medical equipment to factory parts and consumer goods. To diversify its supply chains, Japan is subsidizing companies to move their factories out of China. And the two men vying to be the next American president, incumbent President Donald Trump and former Vice-President Joe Biden, have both signaled their desire to shift the US economy away from China. China’s
Americans' opinion of China hits new lows
Americans’ negative views toward China have reached a “new historic high” amid the coronavirus pandemic, according to a report published by the Pew Research Center on Thursday. “Around three-quarters (73%) of Americans have an unfavorable view of China today – the most negative reading in the 15 years that Pew Research Center has been measuring these views,” wrote the authors of the report, Laura Silver, Kat Devlin and Christine Huang. “The percentage who say they have a very unfavorable view of China is also at a record high of 42%, having nearly doubled since the spring of 2019, when 23% said the same.” Pew’s survey is the latest piece of evidence in an impossible-to-miss trend: distrust
China’s closure of US consulate in Chengdu ‘lost 35 years of exchanges’
Tzu-i Chuang, the wife of the US consul general in Chengdu, said 35 years of exchanges between Beijing and Washington had been consigned to history following China’s closure of the American consulate in the southwestern city. The Taiwanese food writer, who is married to Jim Mullinax, the US consul general in Chengdu, wrote a Facebook post describing her sadness at the closure, which was in retaliation for the US ordering the shuttering of the Chinese consulate in Houston over alleged espionage activities. Chuang – who posts regularly to more than 605,000 followers on Weibo and nearly 70,000 on Facebook – described the impact on the mission’s 100-plus local staff, and on the 23 US diplomats a
Why China pulls its punches when dealing with Washington
Beijing is trying to walk a fine line with Washington as it seeks to present a hardline stance to its domestic audience without causing irrevocable damage to the relationship. Analysts say that despite the so-called Wolf Warrior attitude of Chinese diplomats, official rhetoric and nationalistic online sentiment, Beijing has stopped short of overly provocative steps and has been unwilling or unable to retaliate with equal force to American diplomatic volleys. Tensions flared last week when the US ordered China’s consulate in Houston to close within 72 hours over alleged espionage activities. Beijing reacted by closing the American consulate in Chengdu, rather than shuttering a high-profile of
Selfies and telescopes as closure of US consulate draws a crowd in China
The US consulate in the southwestern Chinese city of Chengdu closed on Monday under orders from Beijing, in a tit-for-tat move following last week’s forced closure of the Chinese consulate in Houston. China’s foreign ministry confirmed on the WeChat social media platform that the consulate had closed at 10am local time, and Chinese officials entered to take over the compound. The American embassy in Beijing posted a farewell to the facility on China’s Twitter-like Weibo. “Today, we say goodbye to the US consulate in Chengdu. We will miss you forever,” it said. Several vehicles and dozens of Chinese workers were seen leaving on Monday morning, while police blocked off roads. Earlier, at 6.24a
Trump moves to punish China over Hong Kong
US President Donald Trump on Tuesday signed an executive order ending Hong Kong’s preferential trade treatment and enacted a bill that would require sanctions against foreign individuals and banks that contribute to the erosion of the city’s autonomy. “Hong Kong will now be treated the same as mainland China,” Trump said in a news conference in the Rose Garden at the White House. “No special privileges, no special economic treatment, and no export of sensitive technologies.” On Wednesday, China said it would retaliate and sanction United States institutions and individuals. The Hong Kong Autonomy Act and executive order are in response to China’s imposition of a controversial national secur