(CitizensOutpost) China is claiming that they don't want a trade war with the United States and that they're protecting their own interests (as any normal country would do), but their actions say otherwise.
Via CNBC:
"China does not want to fight a trade war with the United States, but we absolutely will not sit by and watch as China's interests are damaged," Zhang, who is a spokesman for parliament and was formerly an ambassador to the United States, said.Trump struck a defiant tone on Friday, saying trade wars were good and easy to win, a day after he said he intended to put duties of 25 percent on steel imports and 10 percent on aluminum products.
Trade tensions between the world's two largest economies have risen since Trump took office in 2017, and although China only accounts for a small fraction of U.S. steel imports, its massive industry expansion has helped produce a global glut of steel that has driven down prices.
Nonetheless, there is growing bipartisan consensus in Washington, and support within the U.S. business community, for the U.S. government to counter what are seen as Beijing's predatory industrial policies and market restrictions on foreign firms.
When President Trump slashed the corporate tax rate from 35% to 20% back in December of 2017, China responded by reducing its tax rate from 15% to 0% (exempt), seeking desperately to keep US companies on China's mainland.
Via The Mercury News:
China is responding to Washington’s tax overhaul by offering foreign companies a break on Chinese taxes in a bid to retain investment.The measure announced late Thursday is Beijing’s first major reaction to the U.S. decision to cut corporate tax rates. It follows a flurry of promises by communist leaders to spur growth in the slowing, state-dominated economy by opening more industries wider to foreign companies.
Foreign companies will be exempt from withholding taxes on profits they re-invest in industries specified by Beijing, the Finance Ministry and tax agency announced. It is retroactive to Jan. 1, 2017, meaning companies would receive a refund on taxes paid this year.
Beijing wants to “attract foreign investors after a host of countries unveiled similar measures to lure foreign and domestic investment,” the official Xinhua News Agency said.
The exemption will apply to companies that re-invest profits in industries cited in government investment catalogues, the announcement said. Those include solar and wind power, “green farming” and other fledgling fields in which Beijing is trying to develop technology.
President Trump has made it clear he wants the US to not be dependent in any form on other countries and to keep as many jobs as possible in America. Recent tweets highlight the President's agenda regarding infrastructure industries:
https://twitter.com/realDonaldTrump/status/969525362580484098
- realDonaldTrumphttps://twitter.com/realDonaldTrump/status/969558431802806272
- realDonaldTrumphttps://twitter.com/realDonaldTrump/status/969572374977839106
- realDonaldTrumpThe trade wars, mostly propped up with warnings of tariffs, has also shifted over to the E.U. where there are other threats of impending taxes:
https://twitter.com/realDonaldTrump/status/969994273121820672
- realDonaldTrumpThe protectionist philosophy that is driving Trump's trade policies is a change in the country's direction not seen since the days of Teddy Roosevelt.
Sources:
Dig Deeper: Protectionism Is A Good Thing And Has Been The Historic Position Of America & The Republican Party
Posted from my blog with SteemPress : https://citizensoutpost.com/2018/03/04/china-says-it-does-not-want-a-trade-war-with-us-but-its-actions-say-otherwise/