Beijing, (Reuters)- Another highly dramatic controversy over trade war between the United States and China has sparked, now it is being termed as the U.S puts ”knife to its neck”, (China’s neck).
However, earlier the war between these two countries has made many impacts to other countries economy as well. But recently on 25 September China has responded to this ongoing trade war.
“Now that the US has adopted this type of large-scale trade restrictions, they’re holding a knife to someone’s throat. Under these circumstances, how can negotiations proceed?” –Wang Shouwen, Vice commerce minister
President Trump recently announced tariffs on an additional $200 billion worth of Chinese goods — televisions, toys and more. To that Beijing responded by announcing that it would impose tariffs of 5% to 10% on an additional $60 billion of U.S. goods, comprising meat, liquefied natural gas and more.
However, this is the first hectic official statement by the Chinese side on this issue. Consistently increasing of the fuel prices in India had already impacted on Indian economy by U.S-China conflict.
On 25th, September, Shanghai Composite Index fell 3.8%, affected by trade tensions. Benchmark escalates markets like Hong Kong (down 2.8%), Taiwan (down 1.7%) and China’s South Korea (down 1.5%) too felt the heat.
However, experts had already issued their ideas about this trade war on the world. China’s exports to the US accounted for 19% of all its overseas shipments last year.
“We will actively take all types of measures to help companies resolve their difficulties.” -Luo Wen, vice minister of industry and information technology
Impact on India
In the Indian market, China is one of the biggest investment partners of India, which makes their products, generating manufacturing units. In fact, China’s policies gets impacted whenever Indian economy falls and since the last month value of the dollar in India is continuously falling
However, this war has seriously impacted on Indian rupees value and their economy share in the market.
“There are no domestic reasons… Reasons are global. In the last few months, the dollar has strengthened against every currency.” –Arun Jaitley, Finance minister of India