China Reacts and Taxes the U.S. to the amount of 34 Billion Dollars

ArticleDeflationJanuary 1, 1970 - 12:00:00 AM

The Chinese Government has reacted and is imposing 34 billion $ in customs duties on America; India and China will soon form an "oil buyers club"; China and Russia reach a joint Gold Mining Project agreement in Siberia.

The Chinese government reacts and imposes 34 billion USD in customs duties on the United States.

These new Chinese customs duties are a direct response to Washington's recent announcement of an additional tax of +25% on many Chinese imports.

According to CNBC, these new American taxes of +25% on 50 billion dollars of Chinese imports, do not commit anything good for the economy of the country and for international trade.

China responded by announcing similar tariffs on US goods worth $34 billion, including the automotive and agricultural sectors.

A customs tariff of +25% will therefore enter into force on 6 July, and will impact many products from the United States such as soya, electric and hybrid vehicles...

The Chinese Ministry of Commerce has declared that Beijing will not remain unmoved by the Trump government's economic offensives, and will apply tariffs on the same scale as those of the United States whenever necessary.

India and China will soon form an "Oil Buyers Club".

India and China are discussing the creation of an "Oil Buyers Club" in order to negotiate better prices with oil exporting countries.

This alliance between the two countries could offer them greater negotiating strength and allow them to import more American crude oil while reducing their dependence on OPEC and thus decrease the domination of the oil block.

India denounces an excessive increase in the price of oil which recently exceeded 80 dollars a barrel, the highest peak since 2014. This is causing difficulties for the Indian economy, which is already suffering losses caused by the weakening of the rupee against the US dollar.

India is concerned about rising oil prices that are hurting its economy. Oil Minister Dharmendra Pradhan stressed the need for "stable and moderate" prices to Saudi Energy Minister Khalid al-Falih, according to RT.

China and Russia reach a Common Gold Mining Project agreement in Siberia

China and Russia have jointly validated a cooperation agreement on the exploitation of the Klyuchevskoye gold deposit in the Trans-Baikal region of Siberia.

This mining project, supported by Russian Prime Minister Dmitry Medvedev, represents an extraction volume of 12 million tons per year.

The development of the Klyuchevskoye gold deposit is a very important project, according to the governor of the region, Natalia Zhdanova. Three countries, Russia, India and China, are involved in the exploitation of this deposit.

According to RT, India and China will be represented respectively by the Indian investment company SUN Gold and the Chinese state-owned mining company China National Gold.

Chinese and Indian companies plan to invest nearly $500 million in the project, which is expected to create about 3,000 jobs in the region.

Moreover, the symbol of this project is very important. The rapprochement between China and Russia is now well and truly affirmed; whether by this mining agreement or by the creation of a joint investment fund, the petro yuan or the joint increase of their physical gold reserves.

In a context of trade war established by the United States, such a rapprochement of these three eastern powers risks making international trade as a whole more complex.


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