⚔️ Escalating Trade War
Tax Increases:
The United States has increased taxes on Chinese imports, while China has also imposed heavy taxes on American products in response.
Ban on exports of rare minerals:
China has restricted the exports of rare minerals that are crucial for modern technology industries, causing disruptions in the global supply chain.
Delivery of aircraft halted:
China has instructed its airlines to halt deliveries of Boeing aircraft. A Boeing 737 Max aircraft, which was meant for Shamin Airlines, has been sent back to the United States.
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🌐 Diplomatic and Economic Measures
Warning to Other Countries:
China has warned other countries not to enter into trade agreements with the United States that are against Chinese interests, or else retaliatory measures will be taken.
Response to Hong Kong Sanctions:
In response to U.S. sanctions, China has imposed retaliatory sanctions on U.S. officials and NGO leaders, alleging that the U.S. is interfering in China's internal affairs.
Concerns in the Bond Market:
Rumors are circulating that China may sell U.S. Treasury bonds in response to trade tensions. However, experts say this move could be self-damaging for China.
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🛡️ Military and Strategic Developments
Military Preparedness:
The U.S. State Department has accused China of increasing military activities, which have escalated the risks of potential conflicts beyond economic disputes.
Port fees on Chinese vessels:
The United States is planning to impose heavy port fees on Chinese-made ships to counter China's maritime logistics dominance and restore the U.S. maritime industry.
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📉 Global Economic Impacts
Market Uncertainty:
The escalation of the trade war has spread unease in global financial markets. Southeast Asian countries like Malaysia and Vietnam, which are linked to both the U.S. and China, are being affected by this situation.
Disruption in Supply Chains:
Global supply chains are being disrupted due to China's restrictions on exports of rare minerals and other essential materials, causing difficulties for industries that rely on these resources.
