Beijing vows to take ‘more steps’ to protect its interests if Trump raises tariffs on China

China will enact new measures to safeguard its economy if the United States moves forward with its threat to impose higher tariffs, Beijing has warned.

A Foreign Ministry spokesperson said on Monday that it is resolutely opposed to new US tariffs and issues between the two countries should be resolved with talks. He added that China hopes the US moves back to the path of rationality and “decoupling” won’t resolve the current impasse.

Also on rt.com US-China trade talks to restart soon, Beijing wants both back at negotiating table - Trump...

The sentiments were echoed by Chinese Vice Premier Liu He who was speaking at a tech conference in Chongqing on Monday. Liu, China’s top trade negotiator, said that China is willing to resolve the trade war through calm negotiations and resolutely opposes the escalation of the conflict, the Chongqing Morning Post reported.

The comments come in the wake of President Donald Trump announcing an extra 5 percent duty on some $550 billion of Chinese goods on Friday. That move followed China’s announcement of retaliatory tariffs on $75 billion of imports from the US as the trade war continues to spiral.

China's yuan fell to an 11-year low on Monday as the latest escalation spooked investors.

At the G7 summit on Sunday, Trump said that he could declare the escalating US-China trade war as a national emergency if he wanted to. “In many ways, this is an emergency,” he said.

  • Published in World

China Says Hopes US Stops Tariff Action, Vows To Retaliate Any New Levies

BEIJING: China said on Thursday it hopes the United States will stop its wrong tariff action, adding that any new tariffs would lead to escalation.

The United States said early this month it would slap duties on $300 billion of Chinese goods from Sept. 1, which would effectively extend its tariffs to all of China's exports to the United States.

But President Donald Trump later backed off part of the plan, delaying duties on some items such as cellphones, laptops and other consumer goods to mid-December, in the hopes of blunting their impact on U.S. holiday sales.

"Despite the U.S. decision to delay tariffs on some Chinese goods .... if the United States rides roughshod over China's opposition and impose any new tariffs, China will be forced to adopt retaliatory actions", Ministry of Commerce spokesman Gao Feng told a news briefing.

Gao said trade teams from both sides have been keeping in touch, when asked whether the Chinese vice Premier Liu He would travel to Washington for the next round of face-to-face talks.

When asked if Washington has raised the Hong Kong issue with China during the trade negotiations, Gao referred to Trump's previous remarks that Hong Kong is part of China and it is not necessary for the U.S. to intervene.

"I hope U.S. side can stick to its words," said Gao.

President Donald Trump over the weekend warned against a crackdown in Hong Kong like Beijing's suppression of pro-democracy protests in Tiananmen Square in 1989, which would make reaching a deal he has been seeking to end a trade war with China "very hard".

  • Published in World

Trump threatens to expand tariffs on China by another $300 billion

US President Donald Trump has warned Beijing that he may hit Chinese goods with another $300 billion in tariffs if necessary, but added that he still hopes for a deal. The levies would target China's remaining exports to the US.

"Our talks with China, a lot of interesting things are happening. We'll see what happens... I could go up another at least $300 billion and I'll do that at the right time," Trump told reporters on Thursday, as cited by Reuters. The president did not elaborate on what goods could be targeted by the hikes.

However, Trump says he thinks that China and another country embroiled in a trade row with Washington, Mexico, wants to make a deal. Earlier, Trump threatened to impose a five-percent duty on all Mexican goods starting next week.

"I think China wants to make a deal and I think Mexico wants to make a deal badly," he said before boarding Air Force One on his way to France for D-Day commemorations.

Also on rt.com Chinese businesses consider moving production to Russia as trade war with US escalates...

The simmering trade war between the world’s two biggest economies has already seen an exchange of several rounds of mutual tariff hikes. Almost one year ago, in July 2018, Trump started the row by slapping Beijing with 25-percent tariffs on $50 billion worth of Chinese technology goods, drawing a similar response from China.

Later that year, the White House imposed 10-percent tariffs on $200 billion worth of Chinese imports varying from chemicals to consumer goods, in a bid to pressure Beijing into making trade concessions. China struck back, adding $60 billion of American products to its import tariff list.

Also on rt.com China could use rare earth metals embargo to land killer blow on US defense industry...

The US had initially threated to further raise tariffs to 25 percent, but put the action on pause while the two countries were holding lengthy trade talks. However, the attempt to reach a deal to avert further escalation failed in May this year. The Trump administration increased the tariff rate on Chinese goods to 25 percent, and further threatened to impose the same hikes on the rest of the country’s imports into the US.

It did not take Beijing long to hit back. On June 1, China hiked tariffs to 25 percent on 5,000 US products worth $60 billion. Beijing also threatened to use its advantage in rare earth metals production as leverage in the trade war, with government media saying that China may ban their export. The materials are vital for various industries, especially in the military and high tech.

  • Published in World

"China Has Agreed To Reduce, Remove Tariffs On US Cars": Donald Trump

Washington: China has agreed to scale back tariffs on imported US cars, President Donald Trump said Sunday, one day after agreeing with Xi Jinping to a ceasefire in the trade war between the world's top two economies.

Asia stocks had rallied on the news that Washington and Beijing would not impose any new tariffs during a three-month grace period, during which the two sides are meant to finalize a more detailed agreement.

"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40 percent," Trump said on Twitter.

On Saturday, Trump and Xi agreed to put a stop to their tit-for-tat tariffs row, which had roiled world markets for months.

The Republican president called their agreement -- which Washington hopes will help close a yawning trade gap with the Asian giant and help protect US intellectual property -- an "incredible" deal.

Trump agreed to hold off on his threat to slap 25 percent tariffs on $200 billion worth of Chinese goods from January 1, leaving them at the current 10 percent rate.

In return, China is to purchase "very substantial" amount of agricultural, energy, industrial and other product from the US

The US president did not send any subsequent tweets Sunday explaining which auto tariffs would be removed, and which would be reduced.

In July, China reduced auto import duties from 25 percent to 15 percent, a boon for international carmakers keen to grow sales in the world's largest auto market.

But as trade tensions ratcheted up with the US this summer, Beijing retaliated by slapping vehicles imported from the US with an extra 25 percent tariff, bringing the total tariff rate to 40 percent.

Many US automakers build their cars in China, but for some the tariff hikes have hit sales.

US company Tesla saw its sales drop with the higher prices this fall and recently said it would absorb some of the higher tariff costs and no longer pass them on to consumers.

German carmaker BMW and Ford's Lincoln brand have also been hit hard by the tariffs with some of their cars made in the US for the Chinese market.

The news comes as Trump mulls a tariff hike on vehicles imported from the European Union.

Top executives from German carmakers Volkswagen, Daimler and BMW are to meet Tuesday with senior US officials at the White House to discuss the situation, the German news agency DPA reported, citing unnamed sources.

  • Published in World

China Retaliates Against Trump With Tariffs on $60B of US Goods

China’s Foreign Ministry said the U.S. steps have brought "new uncertainty" to talks between the two countries.

China said on Tuesday it had no choice but to retaliate against new U.S. trade tariffs, raising the risk that U.S. President Donald Trump could soon impose duties on virtually all of the Chinese goods that the United States buys.

RELATED: Trump To Aid US Farmers Suffering From His Trade War

The tariff rates will be levied at 5 and 10 percent, instead of the previously proposed rates of 5, 10, 20 and 25 percent, the Finance Ministry said on its website late on Tuesday.

China will impose a 10 percent tariff on U.S. products it previously designated for a rate of 20 and 25 percent. Liquefied natural gas (LNG), for example, was previously under the 25 percent tariff category but now will be subject to a tariff of 10 percent.

The new tariff measures will take effect on Sept. 24, the date when the Trump administration says it will begin to levy new tariffs of 10 percent on $200 billion of Chinese products.

The tit-for-tat measures are the latest escalation in an increasingly protracted trade dispute between the world's two largest economies.

The Chinese ministry announced tariff hikes hours after Trump said he was imposing 10 percent tariffs on about US$200 billion worth of imports from China, and threatened duties on about US$267 billion more if China retaliated against the U.S. action.

China’s Foreign Ministry spokesman Geng Shuang told a news briefing later that the U.S. steps have brought "new uncertainty" to talks between the two countries.

"China has always emphasized that the only correct way to resolve the China-U.S. trade issue is via talks and consultations held on an equal, sincere and mutually respectful basis. But at this time, everything the United States does not give the impression of sincerity or goodwill," he added.

 

  • Published in World

Chinese newspaper mocks Trump's claim of winning trade war as 'wishful thinking'

SHANGHAI (Reuters) - Chinese state media kept up their criticism of U.S. President Donald Trump’s trade policies, with a newspaper on Tuesday describing as “wishful thinking” Trump’s belief that a fall in Chinese stocks was a sign of his winning the trade war.

As the world’s two biggest economies remained locked in a heated tariff dispute, Beijing and Washington have kept up a blistering rhetoric with threats and counter-threats of more punitive trade measures.

Sponsored

The editorial in the official China Daily underscored an increasingly aggressive stance adopted by Chinese state media against Trump, a shift from their previous approach of tempering any direct criticism against the U.S. president.

On Monday, the overseas edition of the Communist Party’s People’s Daily newspaper singled out Trump, saying he was starring in his own “street fighter-style deceitful drama of extortion and intimidation”.

China proposed retaliatory tariffs on $60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, following the Trump administration’s plan for a higher 25 percent tariff on $200 billion worth of Chinese imports.

https://s4.reutersmedia.net/resources/r/?m=02&d=20180807&t=2&i=1290943644&r=LYNXMPEE7601U&w=1200FILE PHOTO: Shipping containers are seen on a cargo vessel at the Dachan Bay Terminals in Shenzhen, Guangdong province, China July 12, 2018. REUTERS/Stringer/File Photo

The China Daily referred to a Saturday Tweet by Trump which said “Tariffs are working far better than anyone anticipated. China market has dropped 27 percent in last four months.”

China’s stock market was performing poorly before the U.S. administration imposed tariffs, said the English-language newspaper, asserting that the downturn was partly due to Beijing’s attempts to cut corporate debt.

The paper said Trump’s claim that “tariffs are working big time” was undermined by data showing the U.S. trade deficit climbed $3 billion to $46.3 billion in June, the first increase in four months.

The China Daily is often used by the government to communicate its message to an international audience.

Trump has repeatedly criticized China for its trade deficit with the United States, saying it showed Beijing was engaging in unfair trade practices.

Chinese state media has also been promoting the message that the country’s economy is strong enough to ride out the trade war.

https://s4.reutersmedia.net/resources/r/?m=02&d=20180807&t=2&i=1290943643&r=LYNXMPEE7601V&w=1200FILE PHOTO - Shipping containers are seen at the port in Shanghai, China April 10, 2018. REUTERS/Aly Song/File Photo

In a separate commentary, in the People’s Daily overseas edition, a researcher at the Commerce Ministry reiterated this stance, saying China was strong and resilient enough to weather the trade dispute.

“We absolutely have reason to believe that during this complex trade friction, and relying on the domestic market, China can continue to enhance its leading position in the global economic and industrial system,” researcher Mei Xinyu wrote.

Despite the U.S. tariffs, a Reuters poll of economists forecast China’s exports to have grown in July, though many see a deteriorating outlook for shipments especially if Trump goes ahead with his threats to slap more punitive duties on Chinese imports

Recent data showed growth in the world’s second largest economy has already started to cool. The government has responded by releasing more liquidity into the banking system, encouraging lending and promising a more “active” fiscal policy.

  • Published in World

China Threatens New Tariffs On $60 Billion Worth Of US Goods

Beijing: Beijing warned Friday it was prepared to impose new tariffs on $60 billion worth of US goods if Washington ups the ante in the escalating US-China trade war.

The commerce ministry issued a statement saying the new duties would be applied if Washington pulled the trigger on President Donald Trump's threat to raise tariffs on $200 billion worth of Chinese goods.

The Chinese reaction is sure to ratchet up tensions with the Trump administration at the end of a week that saw stock markets rattled by the intensifying trade battle.

"China always believes that consultation on the basis of mutual respect, equality and mutual benefit is an effective way to resolve trade differences," the commerce ministry said.

"Any unilateral threat or blackmail will only lead to intensification of conflicts and damage to the interests of all parties."

The statement said the date of implementation of the taxes will depend on the "actions of the US side" and China reserves the right to apply "other countermeasures".

The threat came a day after Chinese officials appealed for dialogue based on "mutual respect", with Foreign Minister Wang Yi urging the United States on Thursday to remain "cool-headed".

The commerce ministry threat came after Wang met with US Secretary of State Mike Pompeo at a meeting of the Association of Southeast Asian Nations (ASEAN) in Singapore on Friday.

Washington and Beijing are locked in battle over American accusations that China's export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.

Trump has threatened to slap tariffs on virtually all of China's exports to the United States in the tit-for-tat trade conflict.

Defend China's 'Dignity'

The US already imposed 25 percent tariffs on $34 billion in Chinese goods in early July, with another $16 billion to be targeted in coming weeks, drawing an in-kind retaliation from China.

Days later, Washington unveiled a list of another $200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10 percent import duties.

But Trump raised the stakes this week by asking the US Trade Representative to consider increasing the proposed tariffs on the $200 billion worth of goods to 25 percent.

The Chinese commerce ministry blamed the United States for escalating the situation.

"China to take necessary countermeasures to defend the country's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world," the statement said.

  • Published in World
Subscribe to this RSS feed