He expressed fear after both, the U.S. and China, continued to increase taxes on various goods trade. Retaliatory tariffs from China on $60 billion worth of U.S. goods are set to take effect Saturday, June 1, as response to President Donald Trump’s decision to raise duties on $200 billion in Chinese products to 25% from 10%. The former central bank chief also attributed recent weakness in the yuan to the market’s reaction to trade tensions. Eleven Chinese speakers at a press event in Beijing hosted by think tank China Center for International Economic Exchanges argued the trade tensions could last 30 years or more which is dangerous. “Our Chinese people will most certainly win, peace will most certainly win,” former vice minister at the Ministry of Commerce, Wei Jianguo, who was moderating the event, expressed hope.
The existing tariffs, and the threat of tariffs on the remainder of Chinese imports, will also impose a great deal of pain on U.S. consumers and will act as a regressive tax on Americans. One element of strategy of President Xi Jinping of China has recently included threats of restrictions on exports from China of rare earth minerals. It’s about a group of 17 elements with properties of magnetism, luminescence and strength, important in the production of high-tech products, including weapons systems and clean energy products.