China is suffering from a health emergency in the state. The sudden and deadly outbreak of the coronavirus has shaken the very superpower to its core. Hundreds of people have lost their lives after being subject to this virus. The virus has killed 565 people in China and infected over 28 000 people in 25 countries.
China has taken a significant economic step amidst this health emergency. It has cut down $75 billion worth of tariff on US goods.
The Famous Trade War
The world-famous trade war between the two leading economies is known to one and all. But this major step taken by China recently has changed the course of the game between the two nations.
This reduction affects US gods that China had imposed tariffs last September. From the next week onwards, China will cut the additional 10% tariff rate. Other goods that are taxed ta 5% will now be levied 2.5%. This information has come from a statement given by the China’s State Council Tariff Commission. In addition to this, the commission has said that other tariffs on US goods will be maintained. But there can be certain exemptions.
China’s Economic Growth Hampered
“Nevertheless, the announcement may help boost market sentiment, especially at a time when China is battling with the economic impact of the coronavirus outbreak,” said Tommy Wu, an economist with Oxford Economics. According to him, the outbreak of the virus can dent the economic growth of China. Millions out of people are staying home and avoiding public places to save themselves from the virus.
Earlier this week, Washington officials said that the outbreak could delay exports of US goods to China. Sonny Perdue, US Secretary of Agriculture, said the US must be patient with China’s ability to meet those trade pledges given the outbreak of coronavirus there.