25.09.2022

China is trying to bribe U.S. deal over $70 billion

China is trying to bribe US and thus prevent a “trade war”.

During the meeting with the American delegation headed by Minister of trade Wilberham Ross presented the plan for procurement of products from the United States totaling $70 billion.

Under this plan, Chinese companies in the nearest few years should purchase soybeans, corn, oil, coal, commodities industrial use. In exchange for such a large purchase by the Chinese side requires the US to abandon the introduction went for Chinese goods in the amount of $50 billion.

Earlier, Beijing said that if the U.S. will impose duties, China will take retaliatory measures in respect of soya beans and other goods from the US for the same amount. This would have amounted to more than a third of Chinese imports of American goods.

As far as the US and China are important to each other

In addition, Chinese officials expressed deep concern about the situation of manufacturer of telecommunications equipment ZTE Corp. In may, ZTE announced the suspension of basic operations. This happened after less than a month after the imposition by US authorities of sanctions against the company.

In April, the U.S. for seven years has banned local companies to sell ZTE accessories for smartphones, telecommunications equipment and other devices, which are produced by a Chinese company. The U.S. Department of Commerce explained the introduction of sanctions against ZTE that the company, which in January was fined by U.S. authorities $1.2 billion for violating sanctions against Iran and North Korea, violated the terms of agreement for settlement of this case.

The President of the United States Donald trump in may promised to help ZTE to resume normal operation. In his Twitter, trump wrote that, together with the President of China XI Jinping is working to give ZTE the opportunity to “back in business”.

The arrival of U.S. Secretary of Commerce Wilbur Ross and his team in China gave Chinese officials are optimistic that this matter can be resolved without any major moves on the part of Beijing.

The continuing trade dispute between the two largest world economies could also create difficulties for the Vice-Premier of the state Council of China Liu he, a close ally of Chinese President XI Jinping. Liu is regarded as one of the few people with moderate views in the Chinese government, which is increasingly dominated by supporters of greater state control over the economy.

“Strategy trump does not benefit those who are moderates such as Liu he, who seeks to bring China to a more market driven and financial reforms, and such reforms really would be in the commercial interests of the United States,” said James Zimmerman, partner in the Beijing office of law firm Perkins Coie and a former Chairman of the American chamber of Commerce in China.

Meanwhile, as reported “News.Economy”, China decided, from 1 July to lower import duties on nearly 1.5 thousand consumer products from cosmetics to home appliances to increase imports in an effort to open the economy.

Starting next month, the average tariffs on 1449 products from countries in respect of which there is a regime of most favored nation (MFN) under the WTO standards, will be reduced from 15.7% to 6.9%.

Earlier, the Ministry of Finance of China said that the country from July 1, will reduce the import duty on passenger cars from 25% to 15%. Import duty on auto parts will be reduced to 6%.

Leave a Reply

Your email address will not be published.