China issued tariff hikes on over US$ 50 billion list of U.S. goods in an escalating technology dispute with Washington, on April 4, 2018.
China and Washington were involved in technology dispute, which set a tax war between China and the U.S., inflicting a threat among companies about the possible set back in global economic recovery.
China has increased the tariff on all items imported by the U.S., including soybeans and aircraft. The possible hike would be 25 percent, however, the tax office of the country has not yet released a date for the same. The date is likely to depend upon the decision that the U.S. President will make on raising duties on a similar amount of Chinese goods.
Beijing’s enlisted 106 products, including the biggest U.S. exports to China. This reflected the intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology.
The U.S. President promised to narrow a U.S. trade deficit with China that stood at US$ 375.2 billion in 2017. The regulators use access to China’s vast market as leverage to press foreign automakers and other companies to help create or improve industries and technology.
The U.S. products subject to tariff hikes included aerospace, telecoms, and machinery. Wang Shouwen, a deputy commerce minister of China, said at a news conference, “It must be said, we have been forced into taking this action. Our action is restrained.”
Deputy finance minister, Zhu Guangyao, appealed that Washington work in a constructive manner and avoid hurting both countries.
“Pressure from the outside will only urge and encourage the Chinese people to work even harder,” said Zhu at the news conference.
Economists and companies fear that the dispute may compel countries to pick sides. This in turn, is expected to affect the economic growth globally.