China targets American services and other areas because it decrees the “meaning” pricing increases on goods

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China targets American services and other areas because it decrees the "meaning" pricing increases on goods

Dilara Irem Sancar | Anatolia | Getty images

Last week, last week announced that it was in the process of response against the prices of American president Donald Trump, saying that any additional increase in the United States would be a “joke,” And Beijing “would ignore them”.

Instead of continuing to focus on tariff goods, however, China has chosen to use other measures, including measures targeting the American services sector.

Trump took American samples from certain goods From China, up to 245% after several cycles of tat-tat measurement with Beijing in recent weeks. Before calling it “Play of figures devoid of meaning,“China last week imposed Additional imports on imports from the United States up to 125%.

While the Trump administration has largely focused on pursuing pricing plans, Beijing has deployed a series of non-tariff restrictive measures, in particular the expansion of rare-terrain mineral export controls and the opening of antitrust probes in American companies, such as the pharmaceutical giant Dupont and Major Google.

Before the last escalation, in February, Beijing had put dozens of American companies on a so-called “Unreliable entity” List, which would restrict or prohibit companies from negotiating with or investing in China. American companies such as PVH, the parent company of Tommy Hilfiger and Illuma, a provider of gene sequencing equipment, were one of those added to the list.

It is Export tightening Critical mineral elements will force Chinese companies to obtain special licenses for the export of these resources, effectively restricting access to key minerals necessary for semiconductors, missile defense systems and solar cells.

In his latest move Tuesday, Beijing continued Boeing – America The largest exporter – by ordering that Chinese airlines do not take other deliveries for their jets and the carriers have asked to interrupt the purchases of equipment and parts related to planes, according to American companies Bloomberg.

Having deliveries to China Cut Off will be added to the problems of the short of money aircraft manufacturer because he struggles with a Quality control crisis.

In another sign of growing hostilities, Chinese police expressed notice For having apprehended three people, they claimed to have participated in cyber attacks against China on behalf of the American National Security Agency.

The Chinese state media, which published the opinion, urged national users and companies to avoid using American technology and replacing them with national alternatives.

“Beijing clearly tells Washington that two can play in this reprisal game and that he has many levers to shoot, all creating different levels of pain for American companies,” said Wendy Cutler, vice-president of Asia Society Policy Institute.

“With high prices and other restrictions in place, the decoupling of the two savings is full of steam,” said Cutler.

Target service trade

China is considered by some to be looking to expand the trade war to encompass the trade in services – which covers travel, legal, advice and financial services – where the United States has been running a significant surplus with China for years.

Earlier this month, a social media account affiliated to the Chinese Xinhua state media news agency, suggested that Beijing could impose Cross on American legal consulting firms And consider an investigation into the Chinese operations of American companies for the enormous “monopoly advantages” that they have drawn from intellectual property rights.

Chinese imports of American services have increased by more than $ 10 to 55 billion in 2024 in the past two decades, according to Nomura estimates, which leads to a trade surplus of American services with China at $ 32 billion last year.

Last week, China said it would reduce imports of American films and warn its citizens against trips Or to study In the United States, as a sign of Beijing’s intention to put pressure on the American entertainment, tourism and education sectors.

“These measures target the high -visibility sectors – aviation, media and education – which resonate politically in the United States,” said Jing Qian, CEO of Center for China Analysis.

Although they can be low on a real impact in dollars given the smallest scale of these sectors, “reputation effects – such as fewer Chinese students or more prudent Chinese employees – could wave in the university world and the ecosystem of technological talents”, he added.

Nomura estimates that $ 24 billion could be at stake if Beijing considerably increases restrictions on travel in the United States

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Travel dominated services in the United States in China, reflecting expenses by millions of Chinese tourists in the United States, according to Nomura. In travel, education expenses lead to 71%, she estimates, mainly coming from schooling and subsistence costs for the most than 270,000 Chinese students Study in the United States

Entertainment exports, encompassing films, music and television programs, represented only 6% of American exports in this sector, said the investment company, noting that Beijing's last decision on film imports “has more symbolic weight than economic bite”.

“We could see a deeper decoupling – not only in supply chains, but also in people's links to people, the exchange of knowledge and regulatory frameworks. This can point out a transactional tension to systemic divergence,” Qian said.

Could Beijing become more aggressive?

Analysts largely expect Beijing to deploy its arsenal of non -tariff policy tools in order to raise its lever effect before any potential negotiation with the Trump administration.

“From the point of view of the Chinese government, US companies in China are the most important objective for imposing pain in the United States,” said Gabriel Wildau, managing director of the Teneo risk consulting company.

Apple, Tesla, pharmaceutical and medical companies are among the companies that could be targeted while Beijing continues with non -tariff measures, including sanction, regulatory harassment and export controls, added Wildau.

Buyers and staff are seen inside the Apple Store, with its elegant modern interior design and its prominent Apple logo, in Chongqing, China, September 10, 2024.

Cheng Xin | Getty images

Although an agreement can allow both parties to relax some of the reprisal measures, hopes for short -term talks between the two leaders are quickly struck.

Chinese officials have repeatedly condemned the “unilateral prices” imposed by Trump as “intimidation” and promised to “fight until the end”. However, Beijing left the door open to negotiations, but they must be on “equal foot”.

On Tuesday, the White House press secretary Karoline Leavitt said Trump was ready to conclude an agreement with China, but that Beijing has to take the first step.

“In the end, it is only when a country is undergoing enough self-inflicted damage that he could consider softening his position and really returning to the negotiating table,” said Jianwei Xu, economist in Natixis.

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