Make an Annual Inventory of Trade War Between China and America
July 6th marks the first anniversary of the US trade war against China. According to Japanese mainstream media reports, as of the end of April this year, after the three rounds of tariffs were imposed on China and the United States, the export volume of the two countries dropped by 20 billion dollars, while the United States bears more losses than China.
Last year, on July 6th, the United States began to impose a 25% tariff on the first batch of Chinese goods which worth $34 billion. Subsequently, China offered counter-measures and the trade war was fully launched. Look at the trade data of the two countries , you will understand how much the impact of the trade war is. According to the analysis of Japan Economic News, the export volume of Chinese goods subject to tariffs declined by 14%, and the trade volume reduced by 18 billion dollars, accounting for 3% of the annual trade volume with the United States. US exports to China have shrunk by 38% and trade volume by $23 billion. So far, almost half of China’s exports to the United States and 70% of US exports to China have been subject to tariffs.
According to the data, the losses in the United States are more serious. After China imposed tit-for-tat tariffs on American goods , the United States’ exports to China began to decrease, and by the end of last year, it was almost $4 billion. The impact of China’s exports to the United States did not appear until four months later, and it also declined by more than $4 billion as of the beginning of this year.
Hufbauer, a senior researcher at the Peterson Institute for International Economics, believes that there is a gap in the timing of the impact because of the differences in the types of goods between China and the United States export. China's tariffs are mainly on American farm produce and fuel, which it can buy from other countries. The United States imports from China are mostly special products, not easy to buy from other countries at similar prices, including pressure relief valves, cables and other industrial materials.
In view of the fact that the tariff increases are expected to continue, it is impossible to remove at least in the short term. Chinese and American exporters are forced to avoid the goods listed in the tariff blacklist and try to reduce costs in order to tide over the difficulties.
The trade war between China and the United States has also changed the landscape of international trade, causing some countries to worry. In may, the Brazilian animal protein association received a call from the Saudi embassy, saying that Saudi Arabia was concerned that a sharp increase in Brazilian food exports to China would indirectly lead to a sharp decline in Brazilian food exports to Saudi Arabia. After the trade war began, China abandoned American agricultural products and changed its purchase from Brazil.
Trade wars not only allow countries with agricultural products and abundant resources to take profits. Vietnam, Mexico, etc. also replaced Chinese suppliers and exported more electronic equipment and machinery to the United States. After China imposed tariffs, American fuel exports fell by over 50%, and Saudi Arabia and Russia's fuel exports increased by 51% and 40% respectively.
Chinese and American leaders have agreed to restart trade negotiations. White House economic adviser Kudlow in a Bloomberg TV interview last Friday said that US trade representative Lighthizer and finance minister Mnuchin continue to communicate with vice premier of the People's Republic of China and highest trade negotiator Liu He, and will arrange in the future. More talks, but he did not elaborate on the content of the negotiations. He pointed out that there may be face-to-face talks on trade issues between China and the United States, which will happen "sometime soon," but there is no timetable for both sides, because "if we want quality, we will not pursue speed." Chinese Ministry of Commerce spokesman Gao Feng reiterated on Thursday that if the two sides can reach an agreement, the tariffs imposed by the US must be canceled.