Additional sanctions are likely to be levied on $200 billion worth of Chinese goods in the upcoming weeks, putting further pressure on the leaders in Beijing.
According to a report from Bloomberg News, President Trump halfway confirmed the new tariffs during an exclusive interview in the oval office, and several sources who claim to be involved with the issue have also confirmed the new tariffs. The new economic measures will have to wait at least another week until the public comment period ends on September 6, however, the President may announce them at any time.
“We are a much stronger country,” Trump said during the interview with Bloomberg News. “Nobody’s waiting us out. Our country is stronger than it’s ever been financially.”
This move is likely to be seen by the Chinese as an escalation of the current trade war between the two superpowers. While some experts believe new duties would squeeze the Chinese markets, others think that China will continue to grow its market despite the pressure.
“China is more prepared, mentally, this time than it was for the previous round of tariffs,” said Gai Xinzhe, an analyst at the Bank of China’s Institute of International Finance while speaking to Bloomberg. While sounding optimistic, Xinzhe also noted that “The scale is enormous and once the tariffs materialize, they will definitely send jitters through financial markets.”
Despite current the current economic battle which includes the $50 billion tariff already placed on China, Beijing reports that the country’s factory gauge rose in the last 30 days despite negative predictions, according to Bloomberg.
The Chinese government has also set tariffs on U.S. goods, furthering the divide between the two countries.
One expert, speaking to Bloomberg anonymously, stated that the ongoing trade war is escalating due to President Trump’s perception that Chinese leaders failed to do more during U.S. and North Korean nuclear negotiations.
While the trade war continues, China may also be making moves to spread its influence to other areas of the globe. A report by Reuters earlier in the week stated that China will be aiding the Afghan government with “defense and counterterrorism” support.
“China and the international community are all supporting Afghanistan to strengthen its defense and counterterrorism building efforts,” said Wu Qian, a spokesman for the Chinese defense ministry during a press conference, according to Reuters.
Qian also addressed questions regarding the possibility of China building a permanent base in Afghanistan, and was quoted as stating “As for the so-called reports on China stationing forces in Afghanistan, this does not accord with the facts.”
China and Afghanistan share a border, albeit a small one, and China has concerns that the Afghan conflict could cross into its Xinjiang region. The Xinjiang region is home to China’s Uighur people, who are practicing Muslims.