While China is reportedly planning retaliatory tariffs on U.S imports, Boeing Co C919 Max adds another distress to China’s Tariff war with the United States.
On Monday, China announced that it will levy a 25% tariff increase on over 2,500 American products. While thousands of remaining products range from 5% to 10% will be subjected to.
It is also believed that China would make its retaliatory tariffs effective a minute after President Trump levies U.S tariffs on Chinese imports.
Hu Xijin’s skeptical move for China
Soon after China’s announcement, Editor-in-chief of Global Times of China, Hu Xijin, posted a tweet urging China to spot purchasing U.S goods with immediate effect.
China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.
— Hu Xijin 胡锡进 (@HuXijin_GT) May 13, 2019
Although Global Times’ tweet is not the voice of official government, abandoning U.S supplies can be a crucial move. It would most likely to pause the travel growth in China – at least for the moment.
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The consequences should be thoroughly considered.
China hasn’t released countermeasures immediately. I believe the reason is that China is drafting a plan that will have precise effects, making sure it hits the US while minimizing damage to itself.
— Hu Xijin 胡锡进 (@HuXijin_GT) May 13, 2019
China is obviously less powerful than the US, but it has strong capability to protect its core interests, which are narrow in scope. Even N.Korea is strong when it comes to its core concerns.China respects US interests, the US should also be able to discern China's core interests
— Hu Xijin 胡锡进 (@HuXijin_GT) May 13, 2019
China: A big Boeing Customer
A global grounding for over two months led by two fatal Max jet crashes has slowdown Boeing. Although it was once qualified as something as a national treasure, now is in a particularly vulnerable position
Certifying Boeing’s Max can be China’s prudent approach to leverage its position as a big Boeing Customer to its advantage.
As reported by Bloomberg News, in 2017 Chinese officials sought to use the approval of the Max as a way to negotiate more favourable regulatory treatment for home-grown jets being developed by Commercial Aircraft Corp. of China Ltd., or Comac.
China and U.S: The war continues…
Making a prime target of the U.S-China trade war, Boeing’s C919 certification test is going unreasonably slow. While China targeted the C919 roll out by 2021, a time delayed until 2025 is reportedly anticipated.
China cancels some of its existing orders with Boeing; undermining a backlog on Boeing’s survival situation. That is uncertain and questionable already!
The U.S-China trade war has reportedly escalated a tensed situation around the imports.