Here is how China can take revenge on the American tariff

China is the second largest economy in the world and the second largest importer of American goods. China’s entities carry at least $ 784 billion in US federal debts. The country also dominates many rare elements in the world, which is vital to Manufacturing technology. China can arrest these assets if a comprehensive trade war erupted, at an expense American consumers And companies.

“China is actually a more financial power than it looks on the surface,” said Brad Cedar, an older colleague in the Foreign Relations Council.

Since 2018, China has developed organizational tools, including export controls, which can be used to pressure American companies such as Timing and appleTensions between the two countries must rise.

With the high customs tariff rates this spring, ports on the western West coast have been informed of a slowdown in activity, raising concerns about the shortage of supplies that are usually produced in Asia.

In April, the White House suggested several increases in the rate of customs tariffs of US imports from China that may arrive Up to 245 %. The average tariff rate for Chinese export to the United States has increased to 124.1 % as of April 12, according to his analysis Peterson Institute for International Economy. The average definitions in China on American exports are 147.6 % higher, according to the analysis.

“We have already raised the tariffs to a high degree that over time, the trade will go to zero,” Sider, who served as the first adviser to the American Trade Representative during the Biden Administration, said.

Trump administration members suggested that China should come to the negotiating table. But China officials insist on this No commercial talks occurred Between the two countries of the superpower.

“These tariffs of 125 %, 145 % are not sustainable,” Treasury Secretary Scott Bessin said in the “Squawk” fund from CNBC“On April 28.

In April, Chinese leaders urged countries all over the world to stand on what they called.Bullet from one sideFrom the United States. They also pledged to take revenge on the countries that Cut deals with the United States at the expense of China.

“China sends strong signals … that the games we play, which are tariff games and supply chain games, for them, are related to survival,” said Diordrick McKenil, the LongView Global Manager, said that China sends strong signals … that the games we play, which are tariff games and supply chain games, for them, are related to survival, “said Diordrick McKenil, LongView Global Management Director.

a witness video Above to know the cards that China can play in a trade war with the United States