What big step china can take in response to America's heavy tariff?
America further increased the tariff on goods imported from beijing from 104 percent to 125 percent, increasing the trade tension with China. In his social media post, President trump said that he is going to put a break on the reciprocal tariff because many trading partner countries took the initiative of talks instead of retaliation. But he made serious allegations against china and said that it did not respect.
beijing retaliated on the tariff and on wednesday increased the tariff on goods imported from America to 84%. This was Xi Jinping's attempt to give a strong message to Trump. However, after assuming power in January, President donald trump has so far increased the tariff on Chinese goods five times.
What can china do?
china has been continuously saying that it will fight till the end. With this, trade tensions between the two economic poles of the world are increasing. china has said that it has lodged its protest with the World Trade Organization (WTO) against Trump's move.
Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, told AFP that china has given a clear indication that it will not back down. He further said that there is no quick and easy way to resolve this fight.
According to Sky News' report, china can control the export of rare minerals. These minerals are used for high-tech products such as computer chips and electric batteries. china controls a large part of the world's supply of rare minerals. Apart from this, china can target high-impact products such as agricultural goods and high-profile companies like Apple-Tesla. However, according to the report, china is trying to attract as much foreign investment as possible.
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