US President Donald Trump simply increased import duty on the Chinese goods by 25%.
China moved to retaliate against the United States, announcing an increase of tariffs on American goods from 1st of June 2019.
American importers have to pay more for Chinese goods. As a result, all the American consumers have to pay higher price to buy the Chinese goods on sale in Walmart. CNBC and other news media have pointed out that Trump is actually taxing his own people.
Trade talks between the two sides broke down last week without a deal, causing tensions that have rippled through the financial markets and the global economy. American stocks plunged on Monday, extending the recent losses.
Beijing’s retaliation comes at a time when many in China feel that the United States has behaved highhandedly in threatening tariffs.
In the meantime, China stops buying corn and wheat from America and the farmers are complaining. Trump has to find money to subsidise the American farmers.
One of my close friends who visited China recently told me that the Chinese are boycotting American goods. All the Starbucks, KFC and MacDonald outlets are almost empty. The Chinese have their own coffee brands.
Moreover, the Chinese have a drink called Lan Jiou which has the same taste as Pepsi Cola. Lan Jiou means penis in Fujian or Hokkien as shown in the picture below. It is a very popular drink in China.
The Chinese are not buying Apple phones and computers. They prefer their own brands such as Huawei 5G.
Hong Kong–Zhuhai–Macau Bridge
My friend just paid Rm 40 to travel by bus from Hong Kong to Macau. It is a 55-kilometre bridge–tunnel system consisting of a series of three cable-stayed bridges, an undersea tunnel, and four artificial islands. It is both the longest sea crossing and the longest open-sea fixed link on earth. It is open in 2018 and it is 55 km long.
China has constructed a railway to Europe.
China sent a record number of cargo trains to Europe last year as demand for such services continued to expand under Beijing’s new Silk Road ambitions.
A total of 6,300 trains made the journey from China and to Europe trip in 2018, an increase of 72 percent compared to the previous year, according to Chinese news portal Sina.com. Of these, 2,690 trains made the return trip back to China, up 111 percent year-on-year.
China- Pakistan 800km highway
A few day ago, China opened the new 800 km highway linking Pakistan which was completed in 36 months. You can click the link below to see the details.
China Belt and Road
The Belt and Road Initiative is a development strategy adopted by the Chinese government involving infrastructure development and investments in 152 countries and international organizations in Europe, Asia, Middle East, Latin America and Africa.
These new roads will open up more land for development and soon they will have more money to buy Chinese goods. This strategy will enable China to open up more markets for Chinese exports. China does not get involved with the local politics. China has never conquered any country in history.
While US has declared wars against so many countries. The US has dropped more bombs in Vietnam than in the 2nd world war.
In fact, the US lead the Iraq war under false pretence and killed millions of Muslim people-thus created so many suicide bombers. I can imagine how the suicide bombers felt when they saw their parents being killed. They would have sworn on their parents’ grave to kill some white men.
With all these developments as I mentioned above, China does not depend on the US market alone to sell their goods. China is now in a better position to negotiate with the US for a better deal.