08.11.2018 | China dumps billions of dollars on US goods to beat Trump tariffs
Source - The Daily Express
Beijing has retaliated to Donald Trump by blocking purchases of US soybeans and imposing its own tariffs on farm products.
Before the trade war, China was the biggest buyer of US soybeans.
US President Mr Trump imposed tariffs on Chinese goods worth $250billion to force Beijing to stop intellectual property theft and forced technology transfers, improve market access for US firms and cut its high-tech industrial subsidy programme.
Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics, said: “I think Trump has a free hand to pursue his aggressive approach. If anything, the Blue Wave of Democrats will be as hawkish, if not more hawkish, than Trump on China.”
Scott Kennedy, head of China studies at the Strategic and International Studies in Washington, said: “President Trump has paid no political price for taking a tough line on China.
“I still see the short term-political and long-term strategic signals on China still pointing in the same direction”.
The House Democratic leader Nancy Pelosi has commended Trump’s initial round of tariffs on China.
She said: “The United States must take strong, smart and strategic action against China's brazenly unfair trade policies.”
Mr Trump and the Chinese President Xi Jinping are due to meet at the G20 leaders’ summit at the end of November where they hope to make a trade deal.
Despite the effects of this trade war, China’s trade surplus with the US has remained at record highs.
Credit rating agency Moody’s has warned the trade war between the United States and China is likely to escalate further.
Moody’s said: “In both countries, the overall direct macro impact on growth will be manageable.
“However, persistent and broadening tensions between the two largest economies globally are increasingly likely to have widespread negative implications by undermining investment.”
China’s export growth increased in October as companies rushed before Trump’s tariffs were implemented.
Asia Pacific chief economist at IHS Markit in Singapore, Rajiv Biswas, said: “Continued strong export growth in October reflected accelerated deliveries of export orders ahead of the U.S. tariff hike.
“Export momentum will likely slow sharply in early 2019."