US-China tensions have escalated significantly, impacting global trade and economies. Here are the latest updates:
*Trade War Escalation*
- The US has imposed tariffs of up to 145% on Chinese goods, while China retaliates with tariffs of up to 125% on US imports.
- China's ambassador to the US, Xie Feng, urges Washington to seek common ground and pursue peaceful coexistence, warning that China is ready to retaliate.
- The trade war has led to a significant decline in US-China trade, with China's imports of US commodities plummeting in March ¹ ².
*Impact on Global Economy*
- The trade tensions have caused a surge in transpacific blank sailings, with container shipping lines increasing blank sailings by 367,800 TEU.
- The global liquefied petroleum gas (LPG) market is facing upheaval, with Chinese buyers swapping American cargoes for alternatives from the Middle East.
- Hong Kong's trade role is diminishing due to US-China tensions, with the city being swept up in the geopolitical undertow ¹ ³.
*Key Commodities Affected*
- *Liquefied Natural Gas (LNG)*: China's imports of US LNG fell to zero in March.
- *Wheat*: China's imports of US wheat also dropped to zero in March, after accounting for 17% of China's wheat imports last year.
- *Cotton*: American cotton imports plunged 90% from the same month last year to just over 14,000 tons.
- *Soybeans*: However, soybean imports bucked the trend, rising 12% to 2.44 million tons ².
*Other Developments*
- China has appointed a new top trade negotiator, Li Chenggang, amid tariff tensions with the US.
- The US and China are engaged in working-level communication, but China urges the US to stop its "maximum pressure tactics" and resolve differences.
- The trade war is expected to have a significant impact on millions of Chinese workers and the global economy ⁴.
