US wants to contain China's hi-tech ambitions – TDS

The list of tariffs announced by the US Trade Representatives office targets 1,300 product lines totaling $50bn, focusing on high tech items from China's "Made in China" plan, explains the research team at TDS.

Key Quotes

“None of this came as a surprise, hence the negligible market reaction. The aim is clear - The US wants to contain China's hi-tech ambitions by limiting access to US markets. The problem in this theory is that will do little to dent the domestic growth of such goods while China still has access without higher tariffs to markets outside the US. China says it will respond in kind, meaning that it could hit strategically important areas in Trump's key support areas including oil seed and grains, autos, navigational instruments as well as agri products such as Soybeans, Sorghum and live hogs.”