The topic of trade war between China and the United States is a hot topic, and it may have a different degree of impact on all walks of life. So how much is the impact on the chemical industry?
The U. S. trade bar fell
In March 22, 2018, the US President Trump signed the presidential Memorandum for China &ldquo and intellectual property infringement &rdquo, including 60 billion yuan (379 billion 860 million yuan) import duties from China.
According to the measures announced by Trump, the US Treasury Secretary, Mnuchin, will develop new investment restrictions to restrict China's investment and purchase of American company technology.
同时，特朗普指派美国贸易代表莱特希泽在15天内宣布将被提高关税的产品清单。 The White House predicts that new tariffs may affect about 1300 goods imported from China.
Trump also asked Wright chize complaint to the World Trade Organization Chinese on foreign companies discriminatory licensing practices, and hope to get the European and Japanese American allies.

China launched a counter attack
Beijing time on March 23, 2018 morning, the Ministry of Commerce Chinese immediately take counter-measures, released in the United States to suspend imports of steel and aluminum products 232 measures of reduction product list and public comment, intends to levy tariffs on imports from the United States and some products, in order to balance because of the import of steel and aluminum products tariffs to China's interests the loss caused by.
The Ministry of Commerce spokesman Chinese said that the first part of a total of 120 taxes, $977 million relates to the United States and China export, including fresh fruit, nuts and nut products, Wine, modified ethanol, American ginseng, seamless steel pipe and other products, to be imposed a 15% tariff. The second part totalling 8 taxes, involving US $1 billion 992 million exports to China, including pork and products, recycling of aluminum and other products, is to impose a tariff of 25%.

Chemical influence geometry
From the current Sino US trade structure, Chinese on U.S. exports is mainly mechanical equipment (mainly according to the classification of household appliances, electronics and other categories, accounting for 48% of total exports) and miscellaneous products (12%), textiles (10%), (7%) and other metal products.
The products exported to China are mainly concentrated in machinery and equipment (30%, mainly capital goods), transport equipment (20%), chemical products (10%), plastics and rubber products (5%), etc.
From the extent of American sanctions, the negative effects of trade frictions are seen:
1. the iron and steel industry in China and the United States have strong competitive relations, and the degree of negative impact on trade protection is as follows:
Iron and steel > chemical > other metal products > paper products, rubber wood paper products, rubber wood > agricultural products > mechanical and electrical, textile and clothing.
2., from the sensitivity of China's exports to the US industry, based on the proportion of exports, electronic equipment >, machinery and equipment >, clothing manufacturing >, metal products >, furniture >, chemical products >, plastic rubber products >, food.
In case the United States launched a comprehensive and non industrial trade war, the industries with high sensitivity were more affected.

There is no winner in trade war
Jack, ·, Parke, vice chairman of the US China Trade Commission (U.S.-China Business), said “ for US businesses in China, the tariff punishment to China will do more harm than good, and it will only backfire in the Council. ”
Also Americans worry that a trade war would cause internecine situation of “ &rdquo. CNN columnist isdora thinks &ldquo, and no one wins the trade war. No matter what industry you are engaged in in the US, you should now realize the impending risk and impact &rdquo.
Oxford economics think-tank made evaluations, if Trump tariffs on $60 billion China levied 25%, Chinese economic growth rate dropped 0.1% percentage points this year, but the economic damage will be greater, is “ the enemy eight hundred, since the loss of one thousand ”.
The US's trade war with China will be worse for the unstable global economic recovery. The global economic outlook may be even more uncertain, and the process of globalization may also face more twists and turns.
Considering the position of Global trade, the US tries to balance trade and economic relations with trade war. Such a practice may not bring more happiness to American businesses and the general public.
A lot of category Chinese manufacturing has become &ldquo to a great extent; necessity ”, tariffs, cause the prices of these commodities, will damage the interests of American consumers and businesses, resulting in increased production costs of living, they will also be impaired trade war.
Second, the case of industrial structure, the United States may impose tariffs of goods, originally did not reflect the U.S. competitive advantage in the industry, even if the United States does not import these goods from Chinese, American manufacturers themselves would be unable to provide similar goods sufficient to meet the demand of consumers in the United States, the United States still need to be imported from other economies. This will not bring about the revival of the American industry as the policy makers expect.
Third, in the global economic integration today, many products are the result of the global industrial chain cooperation, even if it is finally embodied in “ China makes ”
This also means that the import tariffs on China may also cause damage to all stakeholders on the entire industrial chain. It also includes American businesses in China.
Source: mobi