From laptops to phones, China has a stranglehold on tech components – and it won’t take trade war lying down
China has one message to send the US this morning after imposing retaliatory tariffs – that they won’t take Trump’s trade war “lying down”, says Asia correspondent Nicole Johnston in Nansha Port, Guangzhou.
“Up until this point, they had been relatively restrained in the language that they had used towards the US, now they’re getting stronger,” she says.
“They’ve said that it is in bad nature, that it is trade protectionism and unilateralism.”
There are still a few days until the Chinese tariffs take effect on 10 February, before which there could be “an intervention, or a grand deal or a temporary reprieve”, adds Johnston.
If not, China’s commerce ministry said the country would impose export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items.
“This is something that China has done before,” Johnston says.
“It has a real grip on these critical minerals, which are essential for producing things like mobile phones and laptops, something that the entire world needs.”
China’s threat of a 15% levy on liquified natural gas “probably won’t have an immediate effect” because the product is normally sold on long-term contracts.
“What this is all about is really the message that China is trying to deliver to the US – and it is clear,” Johnston says.
“China is saying it is not going to take this 10% tariff that Donald Trump has imposed on China lying down.”
