Gao said that if the U.S. implements higher taxes, they would be adding more taxes on companies from all over the world, including U.S. companies in China. He added that these measures are directly attacking value chains and global supply. In other words, he said that the U.S. will open fire on the entire globe, including itself.
China won’t bow down to blackmails and threats. The country will continue to defend the multilateral system and free trade, Gao added. He stated that the Chinese government will protect the rights of all foreign companies that operate in China.
Foreign companies account for 59 percent of exports from China. This is $20 billion of the total $34 billion. And U.S. companies are taking a big part of that 59 percent.
Trump’s Goal in Raising Tariffs
As President Trump stated last week, his goal is to bring manufacturing back to America. He is trying to make it more expensive for a production facility to operate on foreign soil. He’s hoping that the end result will be fewer companies leaving the U.S., and more returning or opening plants in the states.
