Friday, 20 September, 2019

China says firms have started inquiring about U.S. agriculture buys

DJIA Dow Jones Index Price Chart Stock Market Gains on US China Trade War News Tariff Delay China to exempt 16 categories of US products from tariffs
Ginger Lawrence | 12 September, 2019, 16:30

The series of tariffs on a large number of products the US and China buy from each other has rattled investors and made consumers uneasy with the outlook of higher prices.

The American Chamber of Commerce in Shanghai's annual China Business Report also found that 75 percent of U.S. firms opposed the United States use of punitive tariffs to force China into a trade deal and market-access reforms.

-China trade war in August when he announced an increase in the levy, already in effect, on US$250 billion in Chinese goods to 30 per cent from 25 per cent starting October 1.

Since past year, the two countries have traded tariffs on more than $360 billion in two-way trade.

The report also found China's ongoing economic slowdown - which predates the trade war - remains the top overall concern of USA companies.

The tariffs were set to increase the rate charged on Chinese imports from 25% to 30%.

The world's two largest economies imposed fresh tariffs on each other's goods in September, escalating a tit-for-tat trade war that has been blamed for a worldwide economic slowdown.

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Both China and the USA have seen signs that the trade conflict between the two countries is taking an economic toll.

Beijing has hit back with tariffs ranging from 5% to 25% on U.S. goods.

The Chinese exemptions will become effective on September 17 and will be valid for a year, according to the Customs Tariff Commission of the State Council, which released two lists that include seafood products and anti-cancer drugs.

The mutual concessions, although minor, are viewed as a peace-offering ahead of minister-level meetings in early October in the US capital, involving Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

"According to my understanding, Chinese firms have started to inquire about prices for US agricultural goods".

Earlier on Wednesday, a survey by a prominent American business association showed the trade dispute was souring the profit and investment outlook for USA companies operating in the world's second-biggest economy.