Sinocism China Newsletter

2 weeks ago | sinocism.com | Bill Bishop

US tariff abuse will impact China, but "the sky won't fall". The US government's imposition of a 34% tariff on China, added to previously imposed tariffs, will severely restrict bilateral trade and inevitably cause short-term negative effects on our exports, increasing economic downward pressure…Facing US variability and extreme pressure, we haven't closed the door to negotiations, but we don't harbor wishful thinking either, having made various preparations to respond to impacts.

3 weeks ago | sinocism.com | Bill Bishop

So much for my speculation yesterday that perhaps the PRC would wait until the end of the three-day Tomb Sweeping Festival holiday to respond to the US tariffs. Late Friday afternoon Beijing time, and nicely timed just before the US stock market open, the authorities announced retaliations using the expected breadth of their economic coercion response toolbox.

3 weeks ago | sinocism.com | Bill Bishop

There were only rhetorical reactions to the new tariffs on Thursday. It is certainly possible that the three-day Tomb Sweeping Holiday (清明节) that runs from Friday through Sunday means there may be no substantive response at least until Monday. Summary of today’s top items:1.

3 weeks ago | sinocism.com | Bill Bishop

President Trump announced he is adding a 34% tariff on most imports from China. I believe this new round is on top on the 20% he added for Fentanyl, so at 54% he is close to the 60% he promised during his campaign, and these are in addition to the existing tariffs from the previous administration, so I think the US tariff rates on some Chinese imports may now be over 70%.

3 weeks ago | sinocism.com | Bill Bishop

Summary of today’s top items:1. Exercises/rehearsals around Taiwan - On March 13th Taiwan President Lai Ching-te convened a high-level national security meeting and later outlined 17 key strategies to counter five major threats from China. These threats include challenges to Taiwan’s sovereignty, espionage targeting its military, efforts to obscure national identity, societal infiltration through cross-strait exchanges, and economic inducements to attract Taiwanese businesspeople and youth.