SHIFTING Techniques
Experts claim that China’s most recent reply to Trump’s taxes is a calculated change from its strategy in 2018, when Beijing imposed punitive tariffs after Washington fired the first shot.
A full-blown business battle ensued, hurting consumers and businesses in and beyond the country’s leading two economy, with its influence still lingering now.
This day, China has held off, although officials have warned that” related measures” will be taken to protect the country’s rights and interests.
Roberts from the Atlantic Council stated that Beijing is attempting to avoid a clear intensification with the US, especially given that it struggles with local monetary issues like poor consumer spending and concerns about local debt.
Imports and investment is only spur economic growth, according to Roberts, and I believe that this is a sign that China does not want this to increase further. They aren’t ready to engage in a cool conflict with the US at this time.
According to Olson of the ISEAS-Yusof Ishak Institute, going down the WTO path and halting retribution is a “tactical shift” that allows China to determine how Trump’s tariffs affect Canada and Mexico.
According to researchers, it also leaves Beijing with some room to negotiate a deal with Trump while also preventing the worst US taxes.
Weeks before Trump took office, he had what he described as a “good, friendly” telephone contact with Xi, who the businessman-turned-president invited to his opening.
When asked if he could reach a deal with China over fair business practices, Trump said in an interview with Fox News on January 23 that he could do so. The US leader then followed up by saying he would “rather not” use tariffs against China, but called it ( tariffs ) a” tremendous power”.
Trump said in a statement to reporters at the Oval Office on February 3 that the proposed 10 % blanket tariffs on Chinese goods would only be” an opening salvo.”
” If we can’t create a bargain with China, then the taxes would be very, very substantial”, he said.
In light of this, watch carefully what Trump and Xi will be having in store for the upcoming meeting.