The President of United States of America, Donald Trump, has been very intense in giving trade sanctions to China this country is accused for not being transparent in the market. Responding to this action, the trader association as the representative of some top technology companies rejects Trump’s policy as it is considered as not effective.
The association is namely Information Technology Industry Council (ITIC). It then sent a letter to the US Ministry of Finance, Steven Munchin, related to the policy. The president and CEO of ITIC stated that their opposition toward tariff is pragmatic. In other words, tariff is not completely functioned well. Rather than the tariff, ITIC encourages strongly the Trump’s administration to build up internationall coalition that can challenge China in World Trade Organization, and others.
More than that, ITIC basically agreed that China published unfair trading policies. However, building up the coalition is considered as more effective to sue this country so that it applies trading relationship which is fairer, more balance, and more reciprocal.
ITIC group consists of numerous famous technology companies in US like Apple, Adobe, Amazon, Intel, Twitter, Facebook, and others. Besides, some foreign companies like Lenovo, Toshiba, and Samsung are also joined it.
Big Sanction from Trump to China
For the sanction, Trump prepared tariff increasing around 25 percent for around 1,300 products from China in any sectors including industry, media, technology, and transportation. China was then not just being quite. It responded to Trump’s sanction in the same way; it is by increasing another tariff for US products.
One of the products from US with higher tariff in China is soy beans. US are indeed known as the second biggest soy beans exporter in the world. Meanwhile, China is one of the main destinations for this export activity.
However, different from the expectation, it seems that Trump does not very concern toward the sanction from China to US. He claimed that there is no any trade war since US has been lost for many years due to the policies that are not competent. He also added that the loss was because of stupid and incompetent people who dominated US some years ago. This statement was posted on his Twitter account and he determined to stop this loss.
In addition, Trump said that he is still a good friend for Xi Jinping personally. However, it doesn’t mean that China is able to do anything for their selfish profits.