JD.com From China Accuses The US Of Serious Protectionism
JD.com alleged the United States of serious protectionism, which can have a major impact on the global economy.
JD.com is one of the largest ecommerce site of China and they came up with an exploding comment stating that though China has been multiple times accused of protectionism, the scenario is reverse. This comment was made by Richard Liu, the Chairman and Chief Executive of the company, at the World Economic Forum of Davos.
Recently United States have imposed high levels of import duties on washing machines and solar panels as a step towards increasing jobs within the country. This has negatively impacted the export tariff of china and South Korea.
Moreover, the US Government has rejected Chinese firm Ant Financial’s offer of acquiring American money transfer firm, MoneyGram. The reason stated by the US Government in this regards were concerns around national security. This acquisition was supposed to be one of the largest under the rule of US President, Donald Trump. Gradually, the US has started decreasing the number of sales of American companies to China, that too at a time of large trade deficit with the later; $347 billion or roughly Rs 22.05 lakh crores as in 2016.
Liu also said that though they are trying to be the largest ecommerce site not only in China about at the international level beating Alibaba.com, this kind of non-cooperation from the other countries is acting as a barrier in its planning and success. The company is now focusing on Southeast Asia, both by liaising with local partners and also by acquisitions. In January the company has already invested in Vietnam’s local ecommerce site, Tiki.vn; at Vietnam both Alibaba and Amazon have made fairly well investments in 2017.
Liu also said this kind of hostile behavior from America in international trade may backfire the country in future.