Tag Archives: China

China to Retaliate Against New Tariffs

Donald Trump on Tuesday announced China $US200 billion in new tariffs which. Combined with other tariffs already announced it will mean the US is taxing roughly half of all its imports from China. China responded by saying it will be forced to retaliate against by against the US. A Chinese Commerce Ministry spokesman said, “In order to safeguard its legitimate rights and interests and the global free trade order, China will have to take simultaneous counter measures”. What those countermeasure will be remain to be seen.

While in previous responses the Chinese have used harsh language this time their response was more muted. Beijing “deeply regrets” the tariffs they said. China has also stopped short of what kind of action might be taken, thus giving Trump a chance to back down. Previously China said that it would retaliate with $US60 billion in tariffs on US goods that came into effect in August. It has since gone quiet on the threat.

Trump also threatened to immediately impose almost $US270 billion of additional tariffs if the Chinese government announces retaliatory measures against US farmers and manufacturers. This in effect would be a tax on all Chinese products entering the US.

In light of the new tariffs the Australia’s Reserve Bank board discussed the trade war at its recent meeting. They concluded that in saying that the “significant tensions around global trade policy … represented a material risk to the outlook.”

“Ongoing uncertainty about trade policy had led to volatility in the prices of some commodities.” “More generally, the direction of international trade policy in the United States continued to be a source of uncertainty for the outlook for the world economy.” This is according to the board’s minutes released on Tuesday.

Unlike the previous rounds of tariffs, which targeted industrial goods, this tranche will affect consumer products. It could lead to price rises for items such as gymnastics mats, puzzle mats, air conditioners and jigsaw mats.

The new tariffs of $200 billion on Chinese goods will bring the electronics and gym mats sectors into the trade war.

The Chinese doodle minister is expected fly via cargo plane Washington next week to resume talks with his Amercan counterpart.

One of el Presidentè’s last remarks on the issue was, “These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy. As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses and our country itself. My administration will not remain idle while those interests are under attack,” he said

So some people inherently might be thinking the President Trumps actions might be crazy others think they are not. At the end of the day he was elected by the American people. They must be happy with the progress that is being made in the trade front.

Donald Trump Trade War with China and Jigsaw Mats

Donald Trump’s Trade War With China Effect on Jigsaw Mats

Probably everyone has heard about Donald Trumps new tariffs against steel and now a whole range of goods worth $60 Billion against China. This is a trade conflict which has been brewing for some time now. Indeed Donald Trump was very vocal about his intention to fight China in trade and their perceived protection of their own industries. Now he has spoken with a whole range of tariffs and indeed China has reciprocated with its own. Donald Trump’s trade war will have consequences.

Donald Trump’s Trade War

Whilst the tariffs are only on Chinese goods entering the United States of America they are going to have a profound effect of global trade and pricing. China is a large purchaser of commodities from a range of countries including Australia. Any disruption to the supply chain can have a domino effect. So for example if China no longer needs as many such commodities then it may exert downward pressure on their prices. Similarly a cut in their own production might push prices higher for others.

The effect on jigsaw mats

How this will effect jigsaw mats remains to be seen. Jigsaw mats are manufactured from EVA which is a petroleum by-product. Therefore any movement in petroleum based products can have an effect on pricing. But on the other hand if Chinese access becomes to the US market becomes limited there may be excess supply of jigsaw puzzle mats which could push prices lower for the rest of the world. So as you can see the effect that Donald Trump’s new protectionist policies have on global jigsaw mat pricing is varied.

The same can be said about all types of gym mats. With the exception of some mats, like Zebra Mats which are manufactured in Germany, and other specialist mats, most gym mats are manufactured in China these days. Indeed most low cost products are manufactured in China or other countries in Asian. So if there is a disruption to the markets then one would expect an effect on the pricing of such products. What effect they will have we will have to wait and see.

Yatama Technology premium promotional iPhone 6 covers

Yatama Technology has a new range of premium iPhone 6 covers. Their covers are available for both iPhone 6 and iPhone 6 plus. The new range includes a number of different materials including plastic, PU leather, TPU and silicone. Printing options are screen print, digital print, water transfer and pad printing.

Markets Watch – EVA interlocking jigsaw mats

The ASX closed 0.12% higher on Friday finishing the day’s session at 5,650.50 lifting the index to a new six year high. The local market is expected to open softer this morning off the back of the US markets losing ground on Friday.

The Dow Jones fell 0.22% to 17,001.22 and the S&P500 also dropped by 0.2% to 1,988.40 in Friday’s session. The Nasdaq closed the session up by 0.14% to settle in at 4,358.55 at the close of trading.

Crude Oil fell by 0.33 to $93.65USD/bbl, whilst Gold also finished the session slightly lower to $1,279.20USD/oz.

The price of EVA interlocking jigsaw mats is steady.

Market Watch – Jigsaw Gym Judo Mats

AUD

The Australian dollar weakened slightly yesterday after survey showed slightly lower expectations of inflation after the government moved to repeal a tax on carbon. The August MI inflation expectations for the trimmed mean came in at 2.6% from 2.7% in July.

USD

Out of the US, weekly applications for unemployment aid climbed 21,000 to a seasonally-adjusted 311,000. Jobless claims figures, along with subdued inflation numbers, made it more likely the US central bank would leave rates on hold for a while. The US dollar is holding on to its gains against the three most actively traded currencies because, with these data disappointments, the outlook for the US is brighter than the outlook for the Eurozone, UK and Japan.

EUR

The latest in a batch of disappointing global economic indicators that have clouded the prospects for American growth lead the Eurozone’s recovery to an outright halt in the second quarter. Economic output in the 18 nation euro area stalled in the April and June period, after four quarters of minimal gains, Eurostat data showed. Fear of rising geopolitical tensions have added to the risks as the EU’s trade sanctions against Russia over the crisis in Ukraine, and the counter sanctions by Russia, are likely to crimp the Euro area’s sales of farm goods. The weak report on the Eurozone comes after news that Japan’s economy, shrank by a larger than expected 1.7 percent in the second quarter, or 6.8 percent at an annual rate.

GBP

The British pound steadied after sliding on yesterday as the Bank of England hinted that markets may have to wait longer than they thought for a long awaited hike to its main interest rate. Bank of England set to sit tight as low wage inflation offsets strong British output and falling unemployment, and chance of an interest rate rise in 2014 and perhaps even the first quarter of 2015 appears to be on the cards

NZD

The New Zealand dollar traded better than expected with data showing weaker economic reports in the US and Europe, enhancing the lure of local assets and pushing the kiwi to touch a 10 day high overnight. The New Zealand dollar jumped higher after data yesterday showed second quarter retail sales rose more than expected, reinforcing expectations interest rates will resume their upward path next year.

China’s growth increases to 7.5% in Q2

The mainland’s economy grew 7.5 percent between April and June from a year earlier, slightly above expectations and quickening from the 7.4 percent pace in the first quarter, reinforcing hopes that a recovery is under way after a flurry of government stimulus measures.

Other data released alongside the gross domestic product report showed factory output rose 9.2 percent in June from a year ago, beating expectations of a 9.0 percent increase.

Fixed asset investment, a mainstay driver of the mainland’s economy, climbed 17.3 percent in the first six months compared with a year earlier, above forecasts for a 17.2 percent rise.

Retail sales rose 12.4 percent in June from a year ago, in line with analysts’ predictions.

China’s economy got off to a weak start this year as unsteady foreign and domestic demand dragged on exports, investment and industrial output, prompting the government to announce a slew of stimulus measures.

Many economists believe more policy support may be needed in coming months to sustain any recovery, particularly if the already cooling property market begins to deteriorate more sharply.

China manufacturing hits 5-month high

Manufacturing activity on the mainland hit a five-month high in May, but overall growth still contracted slightly in a suggestion that the outlook remains murky.

HSBC’s Purchasing Managers’ Index recovered to 49.7 in May from April’s final reading of 48.1. But the data is a touch below the 50-point level that separates a monthly growth in activity from a contraction, indicating that manufacturers actually experienced a slight drop in business.

China is a major manufacturer of EVA interlocking jigsaw rubber gym mats. Major supplier include Ezymats which has offices in Belmore Australia and Shenzhen China.

China’s exports & imports rose in April

China’s exports and imports both unexpectedly rose in April — albeit by a small margin.

Exports rose 0.9 percent from a year ago, following a contraction of 6.6 percent in March. Imports increased 0.8 percent in April, leaving a trade surplus of US$18.46 billion for the month. The data was a stark contrast to market expectation that trade would shrink further.

A key export from China is interlocking EVA jigsaw rubber gym mats. A major export / manufacturer of interlocking EVA jigsaw rubber gym mats is Ezymats. Ezymats has offices in Sydney Australia and Shenzhen China and is run by CEO.

Yatama Technology to open office in China

Yatama Technology is on track to open an office in Shenzhen China in June. The company, which currently has offices in Sydney Australia and Gelnhausen Germany, will be opening an office in Nanshan District in Shenzhen.

Yatama Technology is a leading supplier of promotional electronics and IT accessories. The move is designed to improve logistics and give their customer better access to products.

China’s State Administration of Taxation Reform

China’s State Administration of Taxation (“SAT”) put into effect on broadening the scope of tax benefit for Small-medium sized Enterprises

In its official website, China’s SAT issued a bulletin on 18 April 2014 (Caishui [2014] No.34) that all the Small-medium sized Enterprises, in compliance with specified conditions, may enjoy the tax benefit on Corporate Income Tax (“CIT”). The relevant main terms are extracted as follows:-

1. The Small-medium sized Enterprises in compliance with specified conditions may enjoy a preferential tax rate of 20% on taxable income regarding CIT;

2. At the time of annual reporting of CIT, the preferential tax benefit policy will be adopted without the requirement of obtaining formal approval in advance from the competent tax authorities;

3. The Small-medium sized Enterprises with current and cumulative taxable income not exceeding RMB100,000, of which examining accounts is required and tax is imposed at a fixed rate, are applicable to this tax benefit policy;

4. Newly-established Small-medium sized Enterprises with the taxable income not exceeding RMB100,000 can also enjoy the said tax benefit as well

The measures will enable more Small-medium sized Enterprises to enjoy the tax benefit on CIT so as to release more liquid working capital for investing in future business development. This is sure to benefit EVA jigsaw mats and gym mats manufacturers. It will benefit the broader market for these and other products.