The letters with which China can negotiate a truce in the commercial battle initiated by the US range from Christmas decorations products to more complex such as pieces for airplanes or rare earths. There are several Aces that the Asian giant has in his hand to try to modulate Donald Trump’s initial plan, which has even advanced that China tariffs could amount to 245%.
China dominates the rare earth market
Telephones, computers, wind turbines, medical scanners, defense equipment. Anything with an ignition button depends on the so -called rare earths for its manufacture and the Asian giant controls up to 60% of the global production of these critical resources and 92% of its processing, according to data from the International Energy Agency.
Amid the commercial battle, China has hardened the rules for its export of rare earths, a problem for the US, which in recent years bought the Asian country around 70 % of the rare earths that its industries need.
The ‘American Way of Life’ is ‘Made in China’
Decorating the Christmas tree, disguising itself as Easter rabbit, launching fireworks on July 4 or deploying pumpkins and bats on Halloween can become a complicated task for Americans, because most of the ornaments and lights that they massively display to celebrate these and other traditions come from China.
Also the toys and bicycles, of which around 80% come from the Asian giant, which means that Washington is urgent to reach an agreement before the end of the year if he does not want to put the “Christmas joy” in check.
In addition, in a country loving heated environments, summer will be a key moment to experience the practical consequences of a brake of trade with the Asian country, where 80% of all world fans and 70% of air conditioning equipment are manufactured.
The aeronautical industry and a blow to Boeing
China, with a constantly growing civil aviation, has so far been one of the main clients of the Boeing aeronautical giant, but this week Beijing ordered its airlines not to accept more aircraft deliveries from that US company and suspend “any purchase of equipment and parts for aircraft from US companies.”
If China decides favor Boeing’s great rival, the European Airbusthe firm – one of the great emblems of the US industry – could become one of the great harmed of the commercial war.
Medication supply
The Asian giant plays a key role in the global medication supply chain and the necessary components to manufacture them, a circumstance to which the United States does not escape: although its production and importation of essential generic drugs such as antibiotics or analgesics have diversified in recent years, it still obtains from China part of these elements.
According to figures from the US Business Council.-China, direct or indirect imports of active pharmaceutical ingredients produced in China are around 18 % and total import imports, 8 %.
Debt as a weapon
China is the Second major American treasure bond holder -The called American debt-, with 760,000 million dollars and only behind Japan. This gives the Asian country The ability to devalue the dollar If you decide to sell part of that debt at a price below its value.
This step would be perhaps the hardest measure that Beijing could take against Washington and would impact the global economy, so experts rule out this scenario for now.
Beijing can wait
In the midst of this vertiginous trade war, China can afford to exercise the very oriental virtue of patience, since, even with the doors of the US market closed (which represents 14% of its exports), to The “world factory” does not lack customers In the rest of the globe.
In the midst of this vertiginous commercial war, Beijing is playing the trick of exercising the very oriental virtue of patience, since even with the doors of the US market closed (which represents 14 % of its exports), the “factory of the world” has been trying to earn new customers for years in the rest of the globe.
Another powerful Baza – although not as much as in the First Commercial War, because domestic consumption has not taken off after the pandemic – is its unbarkable internal market, which US companies are not interested in losing access, something that Beijing can take advantage of possible negotiations with Washington.
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