Yesterday China listed a string of concessions to the US with regards to opening up its domestic car industry, only to apply hefty new tariffs on US sorghum imports.
Beijing said that it plans to make foreign investment into the Chinese auto market much easier, with a lifting of all current foreign ownership caps on electric vehicles, shipping and aircraft makers by the close of this year. This will be extended to commercial vehicles by 2020.
Under the existing model, foreign companies must enter into 50-50 joint ventures with a Chinese partner firm if they desire to manufacture cars within China.
In the same day, the Chinese government placed 178% levies on one of the US’ largest exports to China, sorghum, which was a $1 billion market last year according to Bloomberg.
The US trade representative said in response that the US will consider taking the decision to the WTO.