Economy

China to Respond If US Provokes Escalation of Trade War - Foreign Ministry

China to Respond If US Provokes Escalation of Trade War - Foreign Ministry”

Earlier this week, the White House said it was considering boosting tariffs on $200 billion worth of Chinese goods, raising those tariffs to 25 percent from 10 percent.

White House officials had hoped Trump's latest threat would frighten Chinese officials into negotiations, where Trump aims to secure more favorable terms for US manufacturers in one of the world's largest marketplaces.

Comparative advantage is the ability of a country to carry out a particular economic activity more efficiently than another country. This wave of tariffs would include a wide range of products, from dog food to furniture, bicycles to beauty products. They expect protectionist policies on trade - which show no signs of abating - to tap the brakes.

"We hope that those directly involved in the United States' trade policies can calm down, carefully listen to the voices of USA consumers. and hear the collective call of the global community", Wang Yi, the Chinese government's top diplomat and a member of the country's state council, or cabinet, said in Singapore.

As tensions escalate, the dynamics are changing.

"They can compensate much better than we can".

There are signs that his approach is not working the way he intended. The combined total of over $500 billion of goods would cover virtually all Chinese imports into the United States.

Even if the USA tries to buy fewer goods from China through imposing tariffs on Chinese goods, it still has to buy these goods from other countries, he said. Beijing responded by imposing the same penalties on the same amount of US imports.

China's government has announced a $60 billion list of USA goods including coffee, honey and industrial chemicals for retaliation if Washington goes ahead with its latest tariff threat. The U.S. threat and pressure will not work.

The EU was second with $24.2 billion, up 12.9 percent, followed by China with $19.5 billion, up 24.7 percent. But White House officials said formal talks between the countries have mostly lapsed as the economic restrictions have hardened.

That fell apart shortly after it was announced by US officials and amid acrimony in the negotiating team sent to Beijing due to disagreements over the concessions that would be made to China.

"The trade war is a tactic by Trump, but if it eventually evolves into a strategic confrontation, the result will undoubtedly be disastrous", he said.

Trump's threats of higher tariffs weighed on China's financial markets.

"We have been very clear about the specific changes China should undertake".

But Trump's tariffs have drawn criticism at home in the United States for driving up costs for consumers and companies that rely on Chinese imports.

The Donald Trump administration claims the tariffs are necessary to protect national security and US businesses' intellectual property, and to reduce the country's trade deficit with China.

Nevertheless, any fiscal and monetary measures would take time to filter through.

The trade battle has business leaders on both sides anxious about where this will end up.

"The US side has repeatedly escalated the situation against the interests of both enterprises and consumers", the Chinese Commerce Ministry said in its statement. "It's time to stop imposing nonconstitutive tariff action and resolve the very real issues".

The ministry said timing of the implementation of the new tariffs on USA goods would depend on the actions of the US. But that move, made in June, appears to have done little to help.



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