First shots in the trade war: what's next for Beijing?

First shots in the trade war: what's next for Beijing?

On Monday, a new trade conflict between China and the United States, as Beijing Zölle introduced to US imports of almost 14 billion US dollar. This measure was decided only one week after the 10%tariffs of US President Donald Trump, which were applied to the hundreds of billions of dollars in goods that import the United States from China every year.

Beijings' reaction to the American tariffs

The new tariff Beijings, which include a 15%tax on certain types of coal and liquefied natural gas types as well as a 10%inch for crude oil, agricultural machines and some vehicles, concern around $ 13.86 billion in the calculation of CNN. This is less than 9% of China's total imports from the United States. Last year, China exported to the USA worth over $ 524 billion and imported goods worth over $ 163 billion, as the customs authorities confirm.

trade talks and diplomacy

There was hopes that a phone call between Trump and the Chinese leader Xi Jinping could have prevented the escalation of the tensions, but these conversations did not take place. So the topic remains what will happen next and how willingly the two largest economies in the world will burden their tightly intertwined trade relationships.

a possible solution for the conflict?

observer believe that Beijing will carefully avoid how the Trump administration has acted so far. "China has cautiously behaved in his response to the new Trump-Zölle. This is due to the modest effects on China and because XI wants to leave space for negotiations with Trump," explains Andy Rothman, CEO of the Sinology.

The strategic plans of the Chinese leadership

Although Beijing may endeavor to avoid an escalating trade conflict, the Chinese officials have already paved paths to react to potential further measures from Trump and to target restrictions. This is how China sharpened its export control regulations in order to strengthen control over so-called dual-use goods as well as raw materials and critical minerals that are considered essential for the US economy.

The challenges in negotiations

Analysts indicate that Chinese leadership is far from being willing to make comprehensive concessions. "Nowadays, the United States is not particularly prepared for a comprehensive trade deal, especially in view of the failed negotiation process in the past," says Nick Marro, senior economist for Asia at Economist Intelligence Unit. The question of which substances could be negotiated in any trade agreement remains unclear.

The trade relationships between China and the USA are of great importance in view of the geopolitical tensions. It remains to be seen how the Situation develops and whether a special diplomacy contributes to solving the conflict. For current developments, register for the Meanwhile in China Newsletter from CNN