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Update: China Hits Back at US Tariff Plans

The world's top two economies appear to be locked in an escalating trade dispute

The world's top two economies appear to be locked in an escalating trade dispute. Hours after Washington proposed taxes on 1,300 Chinese products, Beijing announced plans to impose tariffs on US planes, cars and soybeans. One factor at the centre of the dispute is the allegation that China has been infringing US intellectual property rights - so how big a problem is this? We ask Riley Walters at the Heritage Foundation think tank in Washington. And Doug McIntyre of 24/7 Wall Street explains how the dispute has affected today's trading.

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6 minutes

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