- China-USA standoff on the import tariff front is playing out with full force. The global community is witnessing a nerve-wracking showdown between the two powerful economies that has consequential fallout in varied forms. Undoubtedly, the way President Donald Trump went about fulfilling his campaign promises in the form of imposing import tariffs on countries that he believes have taken advantage of the USA has singed the world in more than one way. While every other country made attempts at keeping the maverick in the good books to ensure trade agreements in place do not overtly affect the country’s economy, China stood its ground admirably by not only imposing a tit-for-tat import tariff but also refusing to bend backwards to please Trump.
PC: Financial Times
- Got to give it to the Chinese leadership for showing exemplary understanding of the situation and also conveying to the world that it holds the key on many fronts, especially the manufacturing behemoth that the country has grown to become over the years. Even the USA is dependent on Chinese products, consumables as well as critical components, which play an extremely critical role in keeping the domestic consumption pattern chugging along uninterrupted. The presence of Chinese products domestically is almost ubiquitous. That’s the fact. The way Beijing has consolidated its stranglehold on the manufacturing front is a lesson for every country aspiring to become self-sufficient and drive global consumption by producing more.
PC: NBC News
- As such, China dominating global shipping is not surprising when others slept. US port fees cannot reverse the trend either. In what could be another major hit to global trade, the US last week unveiled new port fees for Chinese-owned or operated ships that call on American ports. The tax will come into effect from Oct. These fees are a culmination of a US inquiry into China’s dominance of global shipping that was instituted under the Biden administration. The conclusion is that Beijing has used unfair practices – including huge state subsidies – to pummel competition in shipbuilding. Chinese-built ships today form a major part of the fleets of all the top 10 global shipping companies, while Chinese shipping firm COSCO is the second-largest ocean transporter.
PC: Lloyd’s List
- Further, with more than 80% of global trade carried out on ships, Washington believes the Chinese stranglehold on shipping must be broken. However, Washington’s plans previewed in Feb had caused alarm across the shipping industry. The unveiled fees are a watered-down version of what was initially threatened – up to $1.5mn per ship per port call. Instead, Chinese-owned or operated ships will be charged $50 per net tonne, while Chinese ships owned by non-Chinese firms will be charged $18 per net tonne. The rates will then increase by $5-$30 a year over the next three years. However, coming on top of the 245% tariff, the port fees will further burden American logistics firms and consumers. That’s China’s enterprising entrepreneurship for you.
