The Trump administration has warned China against taking severe measures on foreign firms that are important in the construction of crucial US-based industries.
This warning follows Beijing’s recent action of imposing sanctions on the US divisions of a South Korean shipping company because it eyes the US maritime industry for expansion with investment plans.
In a statement dated Monday October 20, an American government official, who is serving as the US trade representative in the Trump administration, Jamieson Greer pointed out that China’s recent moves against private firms globally illustrate a worldwide trend of economic pressure focused on influencing American politics and managing the global supply chain.
Greer further explained that the Asian country aims at discouraging foreign investment in America’s shipbuilding and other key industries.
US-China maritime conflicts escalates raising tension in the industry
Greer’s warning demonstrates an ongoing series of US-China maritime conflicts. Notably, China manages more than half of the world’s shipbuilding capacity and has been attempting to reinforce its control over the crucial South China Sea in recent years. This battle has significantly impacted the global economy as ship transport handles over 80% of international trade.
Meanwhile, reliable sources have highlighted that even though the US is ranked as the country with the strongest navy globally, its shipbuilding capabilities are moderately low. To address this, the Trump administration has encouraged investments from South Korea, which is grouped as the second-largest shipbuilder in the world.
China’s recent decision to implement sanctions on the US branches of a South Korean shipping company directly affected these efforts. To illustrate this, it prohibited individuals or organizations in China from conducting business operations with the US branches of South Korea’s Hanwha Ocean Co. Furthermore, China has warned that it will take further actions in response against the industry.
Responding to China’s threat, Greer stated that attempts to scare them will not prevent the US from rebuilding its shipbuilding industry and fighting back against China’s efforts to dominate important industrial sectors.
Greer’s statement is an example of the ongoing tensions. Sources have also noted that both countries have levied special port dues on each other’s commercial vessels, a measure that went into effect last week.
To retaliate against China’s actions, the US intends to impose a 100% tariff on Chinese imports of key port equipment and could introduce a 150% import tax on other cargo handling gear.
Trump plans to discuss about Taiwan with Xi Jinping
Trump has been trying to diminish Chinese firms’ influence in strategic global ports, including ones lining the Panama Canal. With the severe actions from both the US and China, analysts have pointed out shipping as one of many issues creating tension between China and the US. This has raised concerns among investors around the world in recent years.
To demonstrate these practices, Beijing has tightened export restrictions on rare earth materials and taken other steps. On the other hand, the US has stepped up restrictions on China’s access to chips and threatened the possibility of 100% tariffs.
This week, Trump announced that he plans to discuss China’s territorial ambitions related to Taiwan, a self-governing island, when he meets with Xi Jinping, the President of the People’s Republic of China next week at the Asia-Pacific Economic Cooperation summit in South Korea.
When reporters requested the president to answer questions on whether he thought China would ask for trade benefits in return for a discussion about Taiwan, Trump declined to respond.
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Source: https://www.cryptopolitan.com/trump-warns-china-retaliating-foreign-firms/
