Is China on way to Economic disastor after USA band Xinjiang Cotton and Tomato? Will China retaliate?

 

The Chinese spokesperson on Thursday asked the USA to lift the ban on Cotton an Tomato bans on Import from Chinese Muslim northwest province alleging that the same are produced by forced labor he further said that this the "lie of the century"

This announcement by the Trump administration on Wednesday is an addition to already existing sanctions on the pretext of human rights violations and other security complaints.

The commercial impact is not clear as Beijing is very sensitive about its Muslim province Xinjiang region which has around 1 million Uyghurs and other Muslim minorities that the world says are kept in detention camps by Beijing. Beijing claims they are trying to eradicate radicalism and are promoting economic development.

The Chinese spokesperson claimed "The so-called forced labor is a lie of the century fabricated out of thin air" Zhao Lijia accused the United States of hurting Chinese Companies by spoiling Chinese developmental programs

He urged the United States to respect factual position to immediately withdraw the ban and stop interfering in internal matters of China especially in Xinjiang province..

Zhao further said "China will safeguard its interest and dignity" but gave no inclination for retaliations from China. The Chinese have taken no-action on earlier USA actions.

Xinjiang is a leading cotton supplier to local Chinese producers and to Bangladesh, Vietnam, and many other countries. This will harm these producers abroad to sell their products in USA markets which will require a certification that Xinjiang cotton is not used in their production.

Zhao warned that the same will disrupt the global supply chain. He claimed that this is detrimental for all world enterprises and consumers along with the United States itself.

Xinjian is also a major grower of Tomato and Tomato paste which is exported to the Middle-East and Europe.

The United States has imported 9 Billion dollars worth of Cotton goods from China alone in the last year which can blow the Chinese companies.

In December last year, the USA government banned Imports from a Chinese company that controls Xinjiang one-third of Cotton. The USA government stopped immediate shipments worth around $2 million while its counterpart UK and Canada also declared the ban on shipments that use forced labor.

The Trump administration has already blocked imports originating from China that uses forced labor and has put travel bans and similar sanctions on Communist Party Officials which is harming the Chinese economy