US lists $50 B in Chinese imports facing 25% tariffs

WASHINGTON (AFP) – The United States (US) has published a list of $50 billion in Chinese imports set to be hit by US tariffs, prompting Beijing to promise equally painful retaliatory measures in an escalating trade duel between the world’s two top economies.

The move came a day after Beijing imposed duties on about $3 billion in US exports such as pork, wine and fruit, a countermeasure to US metal tariffs that was widely seen as a warning Chinese officials will not hesitate to retaliate quickly.

The new US list, published Tuesday – which includes electronics, aircraft parts, satellites, medicine, machinery and other goods – has yet to be finalized and is intended as a response to China’s alleged theft of American companies’ intellectual property and technology.

“The proposed list of products is based on extensive interagency economic analysis and would target products that benefit from China’s industrial plans while minimizing the impact on the US economy,” the office of US Trade Representative Robert Lighthizer said in a statement.

It identifies roughly 1,300 goods that could face duties of 25 percent but remains subject to a review process that will last through at least May before it can take effect.

China slammed the move as “unilateralist and protectionist,” and said it violated the principles of the World Trade Organization (WTO).

“It serves neither China’s interest, nor US interest, even less the interest of the global economy... The Chinese side will resort to the WTO dispute settlement mechanism and take corresponding measures of equal scale and strength against US products in accordance with Chinese law.”

The commerce ministry in Beijing said the countermeasures will be announced “in the coming days.”

“We are confident and capable of responding to any US trade protectionist measures,” the ministry said.

Over the last month, President Donald Trump has rattled markets and disregarded warnings from industry groups and members of his own Republican party in announcing punishing new tariffs on exports from major trading partners.

The move toward trade sanctions on China, however, had received mixed reviews, with some support among lawmakers and industry bodies.

The US-China Business Council said it agreed US companies suffer forced technology transfer in China – but warned against tariffs.

“The American business community wants to see solutions to these problems, not just sanctions,” John Frisbie, the council’s president, said in a statement.

“China needs to substantially improve market access and competitive conditions for American companies selling to and investing in China in certain sectors, but unilateral tariffs may do more harm than good and do little to address the problems in China’s IP and tech transfer policies.”

Monica de Bolle, senior fellow at the Peterson Institute for International Economics, said Beijing was likely to retaliate again by targeting US exports of soybeans and Boeing aircraft – two politically sensitive sectors highly dependent on the Chinese market.

“However, they can wait this out and see what comes out of the 30-day consultation period,” she told AFP.

China’s state-owned Global Times newspaper said Beijing had nearly completed a tariff hit list, which “will involve major Chinese imports from the US.”

General trade tensions had calmed in recent days, with investors taking a degree of solace from news that Washington had begun talks to resolve differences with the European Union and China.

But in a series of irate tweets this week, Trump has renewed threats to scrap the North American Free Trade Agreement – another trade bugbear the president has denounced as a killer of US jobs.

Canadian, Mexican and US officials are currently in fraught negotiations to overhaul the 24-year-old agreement, but analysts say the odds are slim that a deal can be reached ahead of elections in Mexico and the United States.

Last March was Women’s Month. Do you know that women are the world’s most powerful consumers and growing yearly? In the book “Why She Buys?,” Bridget Brennan says that women effectively control about 70%-80% of all consumer purchases through their purchasing power and influence. Women's purchases have a “multiplier effect” since they buy for their families and extended families, sometimes even friends as well. She is often the decision maker if not the “gate keeper” to her household’s expenditures. So, the name on the credit card doesn't tell the whole story. Some important trends that drive the purchasing patterns of women are that: There are now more women in the labor market than ever before, (it is estimated that global income of women will reach $18 trillion in 2018) and with their careers, women get married at an older age, resulting in fewer children. Why cater to women? Women have higher expectations on customer service so elevating customer service for women means better service for everyone. At a Women Business Council Meeting, Chit Juan mentioned of a couple looking at a car to buy, no purchase made because it was not the color the wife wanted and it didn't have a place for her coffee mug! And by the way, studies show that children inherit their intelligence from their mothers.

As part of the celebration of Women's month, I agreed to be a speaker (can’t say No to Grace Tiongco) at the 6th JFINEX Future Business and Finance Leaders Forum ably chaired by Dada del Carmen. It was held at the College of Holy Spirit attended by 700 students from 19 colleges and universities all over the country. The Women In Finance also came in full force with Chair Abet Ty, FINEX Past President Dick DuBaladad and FINEX President Marivic Espano. Two other speakers were Cynthia Villar, ably represented by her daughter Camille, and Rosalind Wee. Sen. Cynthia is our Hero on the farm tourism industry and a big supporter of agriculture development.

Rosalind Wee was a real trooper. She came in denims looking like a “millennial.” She told her life beginnings, the hardships in Mindanao and now, she owns 6 buildings in Fort Bonifacio! What’s even amazing is that she has an eye problem that you won’t notice. Even if it does bother her. She is one who lives life to the fullest. It was an event to remember as it was rejuvenating, nurturing, and fun!

The 10th Go Negosyo Filipina Entrepreneurship Summit organized by Presidential Adviser Joey Concepcion was the biggest Go Negosyo event of the year for women, attended by over 15,000 entrepreneurs, advocates and students. During the event, President Rodrigo Duterte and PA Joey together with former President Gloria Macapagal Arroyo and Trade Secretary Ramon Lopez honored 20 Inspiring Filipina Entrepreneurs. Among them were Warblitz Martinez of Aqua Peace Farm for promoting grassroots business and women empowerment in her aqua-silviculture project; Edilee Omoyon of Milea Bee Farm for her efforts in promoting sustainable agri-tourism and organic farming; Edelyn Cañero of Edelyn’s Homemade Nuts for her determination to transition from peanut retailer to manufacturer; Olive Puentespina for her pioneering work for fine artisan cheeses; Jeannie Javelosa of Great-Women and ECHO store for enabling market access to small entrepreneurs; Marcelina Ace Itchon, CEO of Aspen Philippines, Intrapreneur awardee for her grit and focus to climb the corporate ladder. An intrapreneur is an entrepreneur working within a large corporation.

The Summit also recognized the leadership and legacy of Dr. Lourdes Montinola, chairman emeritus of Far Eastern University for being a multiawarded and distinguished author and educator; and Helen Yuchengco-Dee, chair of Rizal Commercial Banking Corp. for her strong sense of leadership.

Congratulations to Cherrie Atilano of AGREA for winning the Women of the Future award for Social Entrepreneurship in Singapore on her 20 years work in agriculture.

Congratulations to PA Joey Concepcion for the prestigious Padma Shri Award in India for his pioneering work for SMES affecting mostly women.

As I am a banker, what does BSP have to say about women? Bangko Sentral Deputy Governor Chuchi Fonacier said that in the Philippines, men hold 82% of the 269 board seats at the nation’s biggest lenders and some banks have no women on their boards at all. Her message to banks “we encourage diversity, get more women onto your boards.” In PNB, we’re fortunate that there are 3 women out of 15 representing 20 percent.

Jack Ma, founder of Alibaba says that women balance the yin and yang of a company with their instinct and logic. He says that women are the “secret sauce of the company.”

***** Ms. Tarriela is Chairman of Philippine National Bank. She is the first Filipina Vice President of Citibank N.A., and formerly Undersecretary of Finance and a 2018 Inspiring Filipina awardee on Intrapreneurship. She is a natural farmer and an environmentalist.

ftarriela@yahoo.com