Stock Markets Tumble as Trump Makes Good on China Tariff Threat

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"China uses foreign ownership restrictions, including joint venture requirements, equity limitations, and other investment restrictions, to require or pressure technology transfer from United States companies to Chinese entities", President Trump said. China can also make like hard for USA companies, including blocking the likes of Boeing Co. and Cisco Systems Inc. from accessing a procurement market it says is worth 3.1 trillion yuan ($490 billion).

"As we've seen for years, China's theft of American intellectual property and their use of unfair trade practices represent clear threats to manufacturers' competitiveness and the jobs of American manufacturing workers".

U.S. wine exports to China past year were $79 million, according to data from the U.S. Wine Institute, which represents Californian wine makers.

Raymond Yeung is an economist for the Australia and New Zealand Banking Group.

A day earlier, Deputy Assistant Secretary for the Bureau of East Asian and Pacific Affairs Alex Wong stressed that the U.S. commitment to the Taiwan people and their democracy has never been stronger.

In Asia, Japan's Nikkei stock index dropped by more than four percent.

Such shares defied a global market rout caused by the escalating tensions and which dragged Shanghai's main index 3.39% lower at the close, while Shenzhen's index fell 4.49%.

"If Trump really signs the order, that is a declaration of trade war with China", said Mr Wei Jianguo, former vice-commerce minister and now an executive deputy director of the China Centre for International Economic Exchanges, a government-linked think-tank.

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The World Trade Organization is not only a forum for nations to negotiate trade deals, but it is also acts as a court to resolve trade disputes.

Remember when Trump was going to impose tariffs on steel and aluminum imported from anywhere? Even though the high tariff rate was still in place, USA shipments of ethanol to China began to resume in late 2017 due how economically competitive the fuel was.

The administration said it will decide by May 1 if it will extend the exemption "based on the status of discussions" with the countries. "It has been very expensive for America", said Navarro.

It also addresses the issue of China forcing companies to hand over their technology to do business there. They get limited access to Chinese market and are forced to give up ownership of their technologies.

Alex Capri studies worldwide trade at the National University of Singapore.

"Tariffs are taxes, so the next 30 days of input are crucial to make sure we don't punish American workers and families for China's misbehavior", Brady said in a statement.

Also omitted from the exemption list was USA ally Japan, though a government spokesman said Tokyo would press to be included. However, officials have promised to continue to open Chinese markets to foreign companies. "Though they make money in the short run, they are diminishing in the long run", the official said, adding that Mr. Trump is trying to help them. He also promised better protection of intellectual property. There is no indication that the tariffs on China are anything other than that.

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