China goals at US companies and different areas as a result of it concludes the meaningless tariff hikes for items

Dilara Irem Sancar | Anatolia | Getty pictures

China announced last week that it was considering the tariffs of US President Donald Trump, and said that further increases in the United States would be a “joke”, and Beijing would “ignore” it.

Instead of continuing to concentrate on tariff goods, China has decided to use other measures, including steps that are aimed at the American service sector.

Trump has collected the US taxes for selected goods from China by up to 245% after several rounds of tit-for-tat measures with Beijing in the past few weeks. Before China described it as a “meaningless number game” last week, he imposed additional tasks for imports from the USA of up to 125%last week.

While the Trump administration has largely focused on driving on tariff plans, Beijing has taken a number of non-tariff-restrictive measures, including the expansion of export controls of minerals with rare earth and the opening of cartel rights into American companies, such as

Before the latest escalation, Beijing had brought dozens of US companies to a so -called “unreliable unit” list in February, which would prohibit or forbid companies with or in China. American companies such as PVH, the parent company of Tommy Hilfiger, and Illumina, a provider of gene sequencing devices, were added to the list.

By tightening the exports of critical mineral elements, Chinese companies have to secure special licenses for the export of these resources and effectively restrict access to the most important minerals that are required for semiconductors, rocket defense systems and solar cells.

In his recent step on Tuesday, Beijing went to Boeing America's largest exporter by ordering the Chinese airlines not to adopt any further deliveries for his jets, and, according to Bloomberg, asked the airlines to stop purchases of aircraft equipment and parts of US companies.

If you have the deliveries to China Cut-Off, the problems of the cash stack of aircraft manufacturer will contribute, as it has to deal with a continued quality crisis of quality control.

In another sign of growing hostility, the Chinese police published announcements for the arrest of three people, of whom they claimed they had used cyber attacks against China on behalf of the US National Security Agency Agency Agency Agency Agency Agency Agency.

The Chinese state media that published the communication asked domestic users and companies to avoid American technology and to replace them with domestic alternatives.

“Beijing clearly signals Washington that two can play in this retaliation and that there is a lot of lever and creates different pain for US companies,” said Wendy Cutler, Vice President at the Asia Society Policy Institute.

“With high tariffs and other restrictions, the decoupling of the two economies is in full steam,” said Cutler.

Targeting of trade in services

China is attempted by some to expand the trade war to record service trade – which the United States has been carrying out a significant surplus with China for years.

At the beginning of this month, a social media account, which was associated with the Xinhua news agency of the Chinese state media, proposed that Beijing imposed on the US legal advisory companies and an investigation of the China operations by the US companies for the enormous “monopoly advantages” that they gained from rights of the intellectual owners.

China's imports of US services have increased more than 10 times to $ 55 billion in 2024 in 2024 in 2024 in 2024.

Last week, China said it would reduce the imports of US films and warned its citizens of travel or learning in the USA to put pressure on Beijing's intentions to put pressure on the US entertainment, tourism and education sectors.

“These measures are aimed at High Videnz sectors, media and education that sounds politically in the United States,” said Jing Qian, Managing Director at the Center for China Analysis.

While they may only have the actual dollar effects low in view of the smaller scale of these sectors, the reputation effects -such as fewer Chinese students or more careful Chinese employees -could go through the academy and the tech talent ecosystem, “he added.

Nomura estimates that 24 billion US dollars could be at stake if Beijing increases the restrictions on the trip to the United States considerably further

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Travel dominated the US services to China and, according to Nomura, reflected the expenses of millions of Chinese tourists in the United States. Within travel, the expenditure in connection with educational expenses leads to 71%.

Entertainment exports that include films, music and television programs made up only 6% of US exports in this sector, said the investment company and found that Beijing's latest step towards film imports “contains more symbolic profits than economic bite.

“We could only see a deeper decoupling-not in supply chains, but also in ties, exchange of knowledge and regulatory framework. This can signal a shift from the transaction voltage to systemic divergence,” said Qian.

Could Beijing become more aggressive?

Analysts mainly expect Beijing to use its arsenal of political instruments without a tariff to increase its leverage before potential negotiations with the Trump management.

“From the perspective of the Chinese government, the business activities of the US companies in China are the largest remaining goal to cause pain to the United States,” said Gabriel Wildau, managing director of riskprating, Teneo.

The companies of Apple, Tesla, pharmaceuticals and medical devices are among the companies that could be promoted as Beijing with non-tariff measures, including sanction, official harassment and export controls, Wildau added.

Buyers and employees will be seen on September 10, 2024 in the Apple Store with its slim modern interior designer and a prominent Apple logo in Chongqing, China.

Cheng Xin | Getty pictures

While a deal can enable both sides to process some of the retaliation measures, hopes for short -term discussions between the two managers fade quickly.

Chinese officials repeatedly condemned Trump's “one -sided tariffs” as “bullying” and sworn to “fight to the end”. Nevertheless, Beijing left the door open for negotiations, but they must be “equal”.

At the beginning of this week, the Press spokesman for the White House said Karoline Leavitt, Trump was open to a deal with China, but Beijing had to take the first step. “The ball is located in the Chinese dish: China has to do a deal with us, but we don't have to do a deal with them,” she said.

In response to this remark, a spokesman for the Chinese Ministry of Commerce said at a daily briefing on Thursday that Beijing was open to economic and trade problems with Washington, but according to a CNBC translation, the United States must “have its threats and blackmail of blackmail”.

“In the end, if a country experiences only sufficient self -injured damage, it could consider to alleviate its attitude and really return to the negotiating table,” said Jianwei Xu, economist at Natixis.