U.S.-China Trade War begins! Cement enters the war! China to increase tariffs on U.S. cements and ce


Updated Thu, 23 May 2019 14:48:18 GMT


  Chinese social media- microblog and WeChat has exploded with news about an International Sharp Comment broadcasted in CCTV news on May 13.

  Soon after the broadcast, China announced that it will raise the rate of additional tariffs imposed on some of the imported US products, said the Customs Tariff Commission of the State Council in a statement issued in the Central People’s Government of the People’s Republic of China Website(www.gov.cn ).

  The statement shows that America government announced to increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent as of May 10th,2019.

  The measure taken by the United States escalated trade frictions and violated the consensuses reached by both sides to tackle trade disputes through consultations, the statement said.

  The US move damaged the interests of the two sides and did not meet universal expectation of the international community, it said.

  According to laws and regulations such as Foreign Trade Law of the People’s Republic of China and Regulations of the People’s Republic of China on Tariff of Import and Export and the basic principles of the international law, China decide to adjust its additional tariffs on some of the goods imported from the United States from June 1th,2019.

  In cement industry, cement clinker, aluminous cements, concrete pump are in the commodity list that increase tariffs by 25 percent.


  Refractory clay, other clay, limestone cosolvent(normally use to make lime or calcareous stone) are in the commodity list that increase tariffs by 20 percent.


  White cements, other Portland cements, other hydraulic cements, refractory cements, plasters, concretes and similar compositions, additives of other cements, plasters and concretes are in the commodity list that increase tariffs by 10 percent.


  Who will win in Sino-US Trade War?

  U.S. stocks fell sharply soon after the Comment broadcasted in CCTV news, the Dow Jones index once fell 700 points, declines of 2.6 percent. Since Donald Trump announced to increase tariffs on Chinese goods, the Dow’s greatest fell exceed 4.8 percent, Standard & Poor’s declined by 4.9 percent, NASDAQ index biggest dropped by 6 percent. So how much market-to-market losses for America? 2.2 trillion dollars( over 15 trillion yuan). While once after the CCTV news broadcasted, U.S. stock fell exceed 2 percent when it opened, once dropped by over 2.6 percent, more than $1.2 trillion turned to dust. Then, after the Trump’s announcement, A shares in Shanghai Stock Market fell 5.7 percent, almost 2 billion yuan of market-to-market losses, which means the losses of  the U.S. stock market is five times more than China’s.

  According to a study by an international trade consultant company Trade Partnership, increasing tariffs may cause additional $767 expenses per year to the average American family.

  According to a prediction from Oxford Economics, impose additional tariffs will cause 200,000 job losses in America before the end of 2020.

  To cement industry, China as the main source of the U.S. trade deficit, cement industry only accounts for a little proportion. But affected by macro economy, a short-term change may occurred in demand side. At the same time of achieving fast-growing of economics of scale, the impact of our domestic demand to global market has been enhanced, gradually become an essential supplier of global demand.

  As the emergence of Sino-US trade dispute, the probability of trade frictions may or will increased. China or will strive to develop infrastructure to offset adverse effect of export trade. Cement demand will receive support.

  Relevant Taiwan media said previously, from the Asia cement, the profits of the Asia cement in 2019 first quarter has a year-on year growth of 84.4 percent. To  Hsing Ta Cement company , the revenue from mainland China account for over 70 percent of the overall revenue. Under the contribution of mainland market, the combined revenue in first quarter has increased 28.18 percent compared to the same period of 2018.

  On the basis of the statistics, the mainland China has a year-on year growth of  around 10 percent in infrastructure and correlative investment in first quarter. The market thought the government will bound to intensify the investment in infrastructure due to the effect caused by Sino-US Trade War. Therefore, the demand for cement will increase instead of decreasing.

  Mainland China will intensify the stabilization of infrastructure and the development of economy because of Sino-US trade war. It will maintain a certain degree of growth for cement demand. If with the assist by de-capacity, side reform, strict environmental protection to reduce the supply of cement, it could be anticipate that cement price could keep in a high level, Taiwan Cement said.

  Business region of Hsing Ta Cement in Nanjing around pointed that to cushioning impact of U.S.-China trade war, the government has improved the investment of infrastructure since last year. Nanjing Jiangbei District and Nanjing Bei Railway Station will increase relevant construction demand.

  Moreover, China to raise the rate of additional tariffs imposed on some of the US cement and cement products. To some extent, it will absorb impact caused by import cement to domestic market and has supporting role on maintain cement price.

  Comprehensively, Sino-US trade frictions or will accelerate the development of the Belt and Road, domestic infrastructure will still keep steady development. Just as it said at the beginning, no matter how U.S.-China trade war to go, China should strengthen confidence, meet challenges head-on, turn crises into opportunities and create a prosperous future.