Chinese Impose Tariff on U.S. Poultry

China has one of the fastest growing economies, which is one reason why the U.S. is so dependent on China for loans. However, China recently imposed a tariff on U.S. poultry.

The tariffs are another example of China’s willingness to use its economic leverage when it feels it is being challenged. An official at one of Japan’s top traders in rare earth minerals said on Monday that there appeared to be no resumption in shipments to Japan, a result of a still-simmering dispute over Japan’s arrest of a Chinese fishing boat captain. The official, who spoke on condition of anonymity, said traders were watching closely to see whether Chinese customs would start letting shipments through again. “China’s rising assertiveness on the international economic stage reflects its growing economic might and the self-confidence of its leadership, but is tempered by the realization that it faces many challenges in terms of its own development,” said Eswar S. Prasad, an economics professor at Cornell.

China's economy is very powerful and many see this as an act of retaliation after the U.S. implemented a tariff on Chinese tires. Despite the fact that Chinese officials have denied this, it still shows that China is in a real position of power due to its economic leverage.