Tesla hikes car prices

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FILE PHOTO: A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, California, US June 22, 2018. REUTERS

WASHINGTON - US carmaker Tesla has hiked prices on its Model X and S cars by about 20 percent in China, as the tariff battle continues between the US and the Asian economic power.

The move is the earliest indication of how higher Chinese tariffs on certain US imports will flow through to buyers.

China and the United States are both paying the price as they enter the biggest trade war in the history of the global economy.

The US&39;s additional tariffs on $34-billion worth of Chinese imports will have an impact on some Chinese enterprises and their employees.

The Chinese government has announced new policies to reduce the impact of the trade frictions.

"For the world, initially, it is for some countries an opportunity to sell to China the products which the US cannot sell to China. But every country knows there is really nothing opportune about this moment right now. The longer this goes on, everybody is going to be hurt", said Sourabh Gupta, senior fellow, Institute for China-America studies.

China&39;s losses may be minor in terms of its economy, but it&39;s a big blow to individual enterprises.

Government says it&39;s trying its best to mitigate negative consequences.

China&39;s Securities Regulatory Commission has also announced it will allow more foreigners to trade A-shares, in a move to further open capital markets.

"The Chinese government has been very concerned of trying to tackle it because it’s not something that also affects international companies, but it affects Chinese companies here as well.

"So it&39;s something that the central authorities and local authorities are very concerned about and also trying to take measures against. At the same time, we also have to realize that economic reforms and intellectual property rights reform are a part of that. These take a very very long time to take hold," said Peter Ho, research fellow, London School of Economics.

China has the world&39;s largest domestic economy, with a local market of 1.4 billion people.

It&39;s expected this will help absorb the blows of the trade war.