In a move that has the potential of strengthening the position of China in its trade spat with the United States, the country has announced slashing of import tariffs for five Asian countries.
China's commerce ministry said that large exporters to China – India and South Korea, as well as smaller economies of Sri Lanka, Bangladesh and Laos would be benefitted as tariffs on thousands of products from these countries would be reduced by Beijing.
The new reduced tariffs would come into effect from July 1. The ministry added that this measure is a part of an agreement struck between six countries – including China, which is known by the name of the Asia Pacific Trade Agreement (APTA) and which covers over than 10,000 goods.
China's Ambassador to India Luo Zhaohui said on Twitter that over 8,500 goods from the five countries have been identified by China for which there will be a reduction or cancellation of tariffs. He added that the list included goods such as soybeans, steel, aluminum in addition to some other agricultural and chemical products.
A number of those products are included in the list of products that are imported from the United States which would become costlier if the US and China moves ahead with the proposed tariffs on $34 billion worth of each other's exports next week.
Despite the fact that the Asian trade agreement had been in the pipeline well before the trade spat with the US, the are some experts who claim that this move by China underscores a message that Beijing wants to send to Washington.
"This is basically a tactical measure to counter the Trump administration's tariff rise," said Srikanth Kondapalli, a professor of Chinese studies at New Delhi's Jawaharlal Nehru University. "They are trying to tap into other markets if the United States goes ahead with a trade war," he added.
The trade in soybeans is particularly important for both sides. Soybeans are America's leading agricultural export and China is its biggest customer, buying them from US farmers to use as a protein source in animal feed.
in response for planned US tariffs on Chinese goods, imposition of a 25% tariff on American soybeans is planned by China.
it has been reported that in case there is a fall in the exports of US soybeans into China, India wants to step in. According to Indian media, a senior Indian official had said in April in a meeting in Beijing that India could "substitute for" products such as soybean and sugar.
According to Indian government data, in 2017, while India exported only $155 million worth of soybeans with nearly 60 per cent of that being shipped to the United States, none was exported to China.
By purchasing of food products from the United States and then selling them to China could lead to benefits for the five Asian countries.
"In addition to soy, the United States exports higher valued food products such as pork, wine, tree nuts, and fruits to China," Loren Puette, director of market research firm ChinaAg, said.
(Source:www.money.cnn.com)
China's commerce ministry said that large exporters to China – India and South Korea, as well as smaller economies of Sri Lanka, Bangladesh and Laos would be benefitted as tariffs on thousands of products from these countries would be reduced by Beijing.
The new reduced tariffs would come into effect from July 1. The ministry added that this measure is a part of an agreement struck between six countries – including China, which is known by the name of the Asia Pacific Trade Agreement (APTA) and which covers over than 10,000 goods.
China's Ambassador to India Luo Zhaohui said on Twitter that over 8,500 goods from the five countries have been identified by China for which there will be a reduction or cancellation of tariffs. He added that the list included goods such as soybeans, steel, aluminum in addition to some other agricultural and chemical products.
A number of those products are included in the list of products that are imported from the United States which would become costlier if the US and China moves ahead with the proposed tariffs on $34 billion worth of each other's exports next week.
Despite the fact that the Asian trade agreement had been in the pipeline well before the trade spat with the US, the are some experts who claim that this move by China underscores a message that Beijing wants to send to Washington.
"This is basically a tactical measure to counter the Trump administration's tariff rise," said Srikanth Kondapalli, a professor of Chinese studies at New Delhi's Jawaharlal Nehru University. "They are trying to tap into other markets if the United States goes ahead with a trade war," he added.
The trade in soybeans is particularly important for both sides. Soybeans are America's leading agricultural export and China is its biggest customer, buying them from US farmers to use as a protein source in animal feed.
in response for planned US tariffs on Chinese goods, imposition of a 25% tariff on American soybeans is planned by China.
it has been reported that in case there is a fall in the exports of US soybeans into China, India wants to step in. According to Indian media, a senior Indian official had said in April in a meeting in Beijing that India could "substitute for" products such as soybean and sugar.
According to Indian government data, in 2017, while India exported only $155 million worth of soybeans with nearly 60 per cent of that being shipped to the United States, none was exported to China.
By purchasing of food products from the United States and then selling them to China could lead to benefits for the five Asian countries.
"In addition to soy, the United States exports higher valued food products such as pork, wine, tree nuts, and fruits to China," Loren Puette, director of market research firm ChinaAg, said.
(Source:www.money.cnn.com)
