New -delhi, October 11 (IANS). A renewed tariff war broke out between the world’s two largest economies. America and China came face to face in this case. This comes after US President Donald Trump announced the imposition of 100 percent extra tariffs on Chinese imports after Beijing announced new export control over additional rare earth elements. In addition, Trump has also set new export control on critical software. China has already made rules on the export of some rare earth elements, but on October 9 it added five more lines. The Ministry of Commerce has announced that the ministry to protect national security and interests, the execution of rare global -related technologies, including rare earth mining, melting and separation, magnetic material manufacturing and rare recycling in the nature of the earth. Six months ago, the ministry announced export controls at seven medium and heavy rare earth elements. Exporters had to obtain licenses for materials that are critical to different high-tech applications, including electric vehicles, defense systems and renewable energy technologies. China’s dominance of the rare nature market is striking, which controls about 90 percent of global refining capacity and a large part of mining production. President Trump refuted by announcing additional rates on all Chinese imports, which effectively brought the total tariff burden to 130 percent on November 1. Another step was taken which caused fluctuations in trade at the various ports. The new service charges under the office of the US Trade Representative will be in effect from October 14. The charges are part of a ‘Section 301 action’ that the Chinese vessels owned, operated and built by Chinese, as well as vehicle not built in the US. “The United States has consistently exerted the concept of national security, abused export control measures and long-term jurisdiction and set deep sanctions on a number of entities, including China,” state-owned news website People’s Daily reported, citing a statement from October 11. Safety measures’ are aimed at maintaining a ‘fair competitive environment’ in the international shipping and shipbuilding markets. This new wave is now asking questions about a possible fifth round of talks, which is expected when Trump went to South Korea for the top of the Economic Cooperation (Apec) of Asia-Pacific, where he would meet Chinese President Xi Jinping. The US president has already questioned the need for this meeting and indicated about its possible cancellation. The recycled of the trade war has sent global markets in Onrus. New rates and export controls can increase prices for electric vehicles, wind turbines and semiconductors, as supply chains are struggling to adjust, according to a report from the Global Trade Research Initiative (GTRI). Economists warn that the increase can accelerate the global inflation cycle, especially if other countries are forced to choose sides or implement their own countermeasures. “The impact will be felt soon. Prices are expected to rise from electric vehicles, wind turbines and semiconductor components, while the US will look at substitutes from India, Vietnam and Mexico,” the GTRI report states. -—IANS DKP
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