Link to article: https://www.bbc.com/news/articles/czj31l4p7vzo
In response to US escalation of tariffs due to the new Trump administration, Beijing seeks to target specific American produced goods in five major ways, contributing to the intensification of the long running trade war between the countries that dates back to 2018. One of China’s response tariffs is a 10% tariff on US coal and natural gas, and a 15% tax on crude oil. This proves that China is not truly dependent on the US for energy resources, so this tariff will more heavily affect the US. China has also placed a 10% tariff on agricultural machinery, pick-up trucks, and large cars. Specifically in reference to agricultural machinery, this will attempt to boost production and security of food resources. Thirdly, Beijing has announced an anti-monopoly probe into US based tech giant Google. However, Google search services have been blocked in China for approximately 15 years. In addition to this, China has accused Calvin Klein ownership of “discriminatory measures against Chinese enterprises,” another example of Beijing’s attempts to sanction and intensify tensions with America. Lastly, China is launching export controls on rare metals, some of which are key components of military equipment and electrical products, including tungsten, vital for the aerospace industry. However, certain Chinese imports, sourced from the US, including semiconductor machinery and chips, as well as pharmaceuticals, were not messed with in any measure from Beijing.
This article is important because it highlights the tense relationship between the two dominating economies in the world and how they are interacting after the US driven trade wars.. The escalation of tariffs in the wake of the new Trump administration highlights Trump’s goal of US economic hegemony. Historically, the US and China have had tense relations due to differences in ideologies, but their economic relationship has been the backbone of US foreign policy in regards to Beijing. I believe that China will continue to retaliate against the intense tariffs being placed on them by the US.. China’s greatest strength is its economy, as opposed to its military. I think that the US will be forced to either put further tariffs on China or reduce them. China is our foremost trading partner, and at some point this will become a larger issue if they heavily tax all trade from the US. President Trump has stated that there are plans to speak with the President of China, Xi Jinping, in order to strike a deal. However, these plans haven’t been finalized and it is possible that economic relations between the two countries may still get worse before any agreements are made.
In class, we have been discussing geopolitics and the effect of location on a country’s security policies, both foreign and domestic. China is working to extend its influence through the “string of pearls” theory, where it creates military bases and trade ports in countries in the Indian Ocean basin. By creating locations for trade (and potentially military posturing) China is using geopolitical strategy to best increase power and influence that will benefit them, even in the midst of a trade war with Washington.