Tit for tat: China imposes fresh tariffs on U.S. goods

Tit for tat: China imposes fresh tariffs on U.S. goods

What has happened?

China’s Commerce Ministry on Wednesday listed 106 U.S. products, which will be subjected to a 25% tariff, in retaliation to Washington’s intent to impose fresh tariffs on Chinese products worth $50 billion. The items include soya beans, cars, chemicals and aircraft, triggering fears that the world’s top two economies maybe locking horns in a major and escalating trade war. 

US imposed additional duties

The Chinese move was announced soon after the U.S. listed nearly 1,300 Chinese products worth $50 billion for additional duties.

Targeting Beijing’s Made-in-China 2025 plan

• S. tariffs targeted Beijing’s cutting edge Made-in-China 2025 plan
• The blueprint is meant to upgrade China’s overall industry, through Internet-based intelligent manufacturing, covering 10 key advanced sectors.

What is “Made in China 2025”?

“Made in China 2025” is an initiative to comprehensively upgrade Chinese industry

Inspired from Germany’s “Industry 4.0” Plan: The initiative draws direct inspiration from Germany’s “Industry 4.0” plan, which was first discussed in 2011 and later adopted in 2013

Intelligent manufacturing: The heart of the “Industry 4.0” idea is intelligent manufacturing, i.e., applying the tools of information technology to production

Using IoT to increase production: In the German context, this primarily means using the Internet of Things to connect small and medium-sized companies more efficiently in global production and innovation networks so that they could not only more efficiently engage in mass production but just as easily and efficiently customize products.