US and China remain on brink of trade war, but the big guns have yet to be fired, analysts say
The tit-for-tat conflict could get nasty if Beijing targets key US exports, like soybeans, but a conciliatory path might prove more fruitful
Washington is set to unveil punishing tariffs against Chinese products this week amid an escalating trade skirmish between the world’s two largest economies, which analysts say could prompt Beijing to retaliate strategically against US products such as soybeans and cars.
The United States is expected by Friday to release a list of the US$50 billion to US$60 billion worth of Chinese imports that will be affected following a Section 301 trade investigation into Beijing’s intellectual property practices, including its forced technology transfer policies.
It comes as trade tensions and rhetoric have ramped up between the two countries, with US President Donald Trump reiterating long-standing complaints against intellectual property theft and China’s record-high trade surplus with the US.
Although US trade representative Robert Lighthizer indicated recently that “there’s hope” in the ongoing talks between Washington and Beijing, China is not expected to back down, observers say.
The latest tit-for-tat measures saw China on Sunday imposing tariffs of up to 25 per cent on 128 US imports, including fruit and pork, in retaliation for earlier US duties on steel and aluminium imports.
