China says US, China working towards removing all tariffs

[Hamartia Antidote]

Did I use any of these words in your quote? You don't notice the change because of 6%+ devaluation of RMB.

So US consumers aren’t yet paying higher prices due to the tariffs.

If anything Chinese consumers are paying higher prices for imported goods and when they travel overseas due the devaluation of the yuan.

 

[Mista]

It's American consummers that are paying for the increased prices due to higher tariffs.

Chinese consumers are paying for Trump's tariffs indirectly actually.

It made little difference to American consumers because the RMB has depreciated by 10% which largely cancels out Trump's 10% tariffs.

However because of the depreciation of the RMB, Chinese consumer have to pay more for foreign imports. Foreign business which export to China will be affected as well because of the fall in Chinese international purchasing power.

In the last months, China stopped buying products of US agriculture and energy, and enjoyed more exports to the US as well as an unpresidented surplus! Get the facts right!

The strong exports to the US can be attributed to mainly 2 reasons:

1) A front-loading affect to avoid higher tariffs in the future.

2) Recent strong economic growth in the US which increases demand and imports.

 

[Sanchez]

So US consumers aren’t yet paying higher prices due to the tariffs.

If anything Chinese consumers are paying higher prices for imported goods and when they travel overseas due the devaluation of the yuan.

Yes Chinese are paying higher prices for the imported goods and it's more expensive when people are touring abroad. What is happening is that people of middle-incomes buy less and travel less. It has nothing to do with daily life of over 90% Chinese.

Chinese consumers are paying for Trump's tariffs indirectly actually.

It made little difference to American consumers because the RMB has depreciated by 10% which largely cancels out Trump's 10% tariffs.

However because of the depreciation of the RMB, Chinese consumer have to pay more for foreign imports. Foreign business which export to China will be affected as well because of the fall in Chinese international purchasing power.



The strong exports to the US can be attributed to mainly 2 reasons:

1) A front-loading affect to avoid higher tariffs in the future.

2) Recent strong economic growth in the US which increases demand and imports.

China imports less than 400b goods from US, over 50% are chips of various kinds. If US restricts chip export to China that really hurts China's tech industry. But in three to five years China has to build her own chip industry, just like the results of other embargos US imposed on China in the past 70-80 years.

US buys around 600b goods from China. Many of these products actually are made by US companies in China such as iPhones. If Trump continues to raise tariffs to 25% on all China's exports to US the biten apple will become rotten and has to move to another country which is certainly not the US of A.

The higher pressure the better China will develop. China is buying time by talking to the US about US demands. We are not there yet to slap directly on the face of Trump or his alike. We will but who know's when.

 

[Mista]

Yes Chinese are paying higher prices for the imported goods and it's more expensive when people are touring abroad. What is happening is that people of middle-incomes buy less and travel less. It has nothing to do with daily life of over 90% Chinese.

Today we live in a globalized world where no country produce and consume 100% domestically. Even a closed economy like North Korea has to depend on trade.

The tariffs may not affect most Chinese, but the depreciation of the Yuan will definitely affect most Chinese. Energy, food, animal feed, raw materials, intermediate goods etc. Exports will also be affected because China is a part of the global supply chain; you import, add-value, and export. The cost of production may rise because of the increase in the cost of imports. There are intangibles too such as investor's confidence and capital outflow if the RMB is fluctuates too much.

China imports less than 400b goods from US, over 50% are chips of various kinds. If US restricts chip export to China that really hurts China's tech industry. But in three to five years China has to build her own chip industry, just like the results of other embargos US imposed on China in the past 70-80 years.

Eh...

https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china

Exports

• China was the United States' 3rd largest goods export market in 2017.
• U.S. goods exports to China in 2017 were $129.9 billion, up 12.4% ($14.3 billion) from 2016 and up 106.4% from 2007. U.S. exports to China are up 577% from 2001 (pre-WTO accession). U.S. exports to China account for 8.4% of overall U.S. exports in 2017.
• The top export categories (2-digit HS) in 2017 were: aircraft ($16 billion), machinery ($13 billion), miscellaneous grain, seeds, fruit (soybeans) ($13 billion), vehicles ($13 billion), and electrical machinery ($12 billion).
• U.S. total exports of agricultural products to China totaled $20 billion in 2017, our 2nd largest agricultural export market. Leading domestic export categories include: soybeans ($12 billion), cotton ($978 million), hides & skins ($945 million), coarse grains (ex. corn) ($839 million), and pork & pork products ($662 million).

 

[Hamartia Antidote]

What is happening is that people of middle-incomes buy less and travel less. It has nothing to do with daily life of over 90% Chinese.
.

Well I guess you are lucky your middle class is not huge.

 

[Sanchez]

Today we live in a globalized world where no country produce and consume 100% domestically. Even a closed economy like North Korea has to depend on trade.

The tariffs may not affect most Chinese, but the depreciation of the Yuan will definitely affect most Chinese. Energy, food, animal feed, raw materials, intermediate goods etc. Exports will also be affected because China is a part of the global supply chain; you import, add-value, and export. The cost of production may rise because of the increase in the cost of imports. There are intangibles too such as investor's confidence and capital outflow if the RMB is fluctuates too much.



Eh...

https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china

Exports

• China was the United States' 3rd largest goods export market in 2017.
• U.S. goods exports to China in 2017 were $129.9 billion, up 12.4% ($14.3 billion) from 2016 and up 106.4% from 2007. U.S. exports to China are up 577% from 2001 (pre-WTO accession). U.S. exports to China account for 8.4% of overall U.S. exports in 2017.
• The top export categories (2-digit HS) in 2017 were: aircraft ($16 billion), machinery ($13 billion), miscellaneous grain, seeds, fruit (soybeans) ($13 billion), vehicles ($13 billion), and electrical machinery ($12 billion).
• U.S. total exports of agricultural products to China totaled $20 billion in 2017, our 2nd largest agricultural export market. Leading domestic export categories include: soybeans ($12 billion), cotton ($978 million), hides & skins ($945 million), coarse grains (ex. corn) ($839 million), and pork & pork products ($662 million).

I bet your figures are more accurate and professional. You may also find US import data to analyse.
You seem to be a rational scholar and it's better to send your analysis to Mr Trump. We are coping with Trump maniac and hysteria of American First. Our logic is: If you want a balance you should buy less from us, You can not force us to buy more useless goods to balance your account. We don't need rational way of thinking in a trade war with Trump's US.

Well I guess you are lucky your middle class is not huge.

You don't need to behave like Trump idiot! Trade war doesn't hit us more than US itself.

 

[Mista]

I bet your figures are more accurate and professional. You may also find US import data to analyse.

You seem more open-minded than other Chinese posters here.

We are coping with Trump maniac and hysteria of American First. Our logic is: If you want a balance you should buy less from us, You can not force us to buy more useless goods to balance your account. We don't need rational way of thinking in a trade war with Trump's US.

The cause of the huge trade deficit is the US's domestic economic imbalances; they are over-consuming. China has the opposite problem: over-investing and overcapacity. Therefore the huge trade deficit between the 2 largest economies is natural and tariffs won't fundamentally solve the trade imbalance. Both sides have to work to restructure their economies.

But the US do have legitimate concerns such as infringement of intellectual property and unfair trade practices by China. China has already become the second largest economy and she should take on more responsibility despite being a developing country. The rest of the world can't close an eye towards China anymore when your actions have huge implications for other countries unlike when China joined the WTO.

1:57

 

[Sanchez]

We have huge trade deficit with SK, Japan, TW and etc. The total surplus of China's foreign trade is marginal. Shall we start a war with those Japanese or South Koreans? US deficit with China is that they have restrictions on "sensitive techs" to be exported to China! It's understandable that you have deficit if you deny to sell what we want to buy. The trade war is not just about the deficit or surplus. It's about Chinese development should give ways to the slogan of American First! We should not develop what the US doesn't want us to work with!