European companies whose production chains have roots

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European companies whose production chains have roots in both the US and China are at risk. One example is BMW, a German car - maker that manufactures its automobiles in the US and sells them to the Chinese. Beijing's retaliation package includes action against the US autos. International suppliers that work with American companies like Boeing, one of China's targets, could feel the burn if Beijing starts cancelling orders and Boeing, in turn, slows down production. Boeing has suppli- ers in Japan, Italy, the UK and Canada. The American farmers, who are the targets of China's proposed soybean tariffs, would be hurt as they lose access to the Chinese market. Chinese and American consumers, who would see higher prices if tit - for - tat tariffs keep escalating. 47. Keith Johnson, Trump s Steel Tariffs on Allies Complicate Bigger Problem: China ”, May 31, 2018, available at: - steel - tariffs - on - allies - complicate - bigger - problem - china/
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 40 China, the world's largest consumer of pork, is targeting American pork and soybeans, which are often used to feed pigs in China. As prices for both those products rise, it would be more expensive to eat pork across China. Some of the winners in this trade war may be: - International companies that compete with the American ones could see a sales hike. Airbus could gain from Boeing's loss of sales to China, although Boeing might make up for the loss of the Chinese market by diverting to India and the Middle East. The Japanese car - makers could benefit if retaliation slows the American auto sales in the Chinese market. Latin American exporters of soybeans could partially satisfy China's de- mand for the product as Beijing turns away from American farmers, but it's unclear whether there's enough growing capacity in South America to replace the US as a source. India NITI Aayog Vice - Chairman Rajiv Kumar who had a meeting at the fifth Strategic Economic Dialogue (SED) with his Chinese counterpart He Lifeng, the Chairman of China's top planning body the National Development and Reform Commission (NDRC), in Beijing on April 14, 2018 said: India would not take sides in the ongoing trade spat between the US and China ”. He also said, India has always taken an independent position on trade issues ”. In his address at the SED, Rajiv Kumar made a strong pitch for China to allow India's exports of soybean and sugar. Elaborating on his stand in asking China to import soybean and sugar from India, he said, My hint was much more towards agricultural tariffs in China than anything else ”. China's agricultural tariffs are high and India's agricultural exports suffer as a result of it.
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