The White House's expectations of China's pliancy didn't pay off. Tianxia isn't planning to go along with raised import duties for Chinese products. Their promised mirror-like response may seriously hurt the US economy, and the aircraft industry may suffer the most. The Boeing Corporation that closely works with China has already warned of the potential losses in the world's aircraft industry.
Anastasia Sakhovskaya will tell us who else may be affected by the economic confrontation between the US and Tianxia.
Americans will finally be hit back. Beijing's response to US's new economic lunge was very blunt and extremely honest. Over 100 products that may get a 25% fee increase sum up to about $50,000,000,000. China can make the US pay a mirror price for the sanctions. But, if for the CPR it's one-tenth of their commodity turnover, for the US it'll be one-third of their export to the CPR. The new list doesn't only consist agricultural goods, but planes, too, and one-fourth of all Boeings were manufactured for China, as well as chemicals, oil products, and cars.
Zhou Chen, the acting director of China's ICC: "China's industrial and commercial sectors support the government in their legal and economic countermeasures against the US to protect the legal rights and interests of Chinese companies and to protect the multiple-party trading system".
The annual cash flow in the Chinese branches of US companies is $200,000,000,000. Trump has once again promised to negotiate with China but fails to live up to his word. The Chinese are losing their patience. The CPR MFA said that any attempts to bring China to its knees with threats and scares will fail.
Liu Kang, the official CPR MFA rep: "The US has demonstrated absolute ignorance about mutually beneficial cooperation. Fully ignoring the consumers' interests is a serious violation of the WTO's basic principles and spirit. China will immediately seek help from the WTO's dispute-settlement mechanism to help them fight US's improprieties. At the same time, we'll prepare equally strong and significant countermeasures".
China has already initiated an investigation within WTO. Experts predict something like the Great Depression for the world. In the 1930s, everything also started with a rate dispute.
We don't know when the sanctions will be in effect. As soon as restrictions are set in the US, China will fight back immediately. It should happen around mid-May and the entire world hopes that two largest economies in the world are just showing off their trade muscles. However, it's been obvious for a while who's winning.
Anastasia Sakhovskaya, Mikhail Artyukhin, Beijing Vesti Bureau.
