“If a trade war were initiated by the US, China would fight to the end to defend its own legitimate interests with all necessary measures”, it said.
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In Asia, Japan’s Nikkei stock index dropped by more than four percent.
However, Liu said the investigation report “violates worldwide trade rules and is beneficial to neither Chinese interests, US interests nor global interests”, Xinhua cited him as saying. He has shown few signs of acquiescing to USA pressure. In addition, there has been a debate over whether the United States should “go it alone” in confronting China, or use a multilateral approach (as was, for example, the Trans Pacific Partnership).
Trump has given his administration 15 days to come up with a list of tariffs, after which there would be 30 days of public consultation, and nearly certainly intense lobbying from within the United States.
“When you start hurting this big segment of the economy from the people that gave him a lot of support in the election, I think it’s going to hurt him. -China relationship”, said economist Tony Nash, who is CEO and founder of data analytics firm Complete Intelligence. “And then we expect the U.S.to retaliate further”.
The latest proposed Chinese tariffs would add a 25 percent charge on pork and aluminum scrap, mirroring Trump’s 25 percent duty on steel, according to the Commerce Ministry.
Wei Jianguo, vice chairman of Beijing-based think tank China Centre for International Economic Exchanges, told China Daily that Beijing could impose tariffs on more United States products, and is considering a second and even third list of targets.
The threat to limit imports of USA soya beans is particularly astute; China buys 70% of U.S. soya bean exports and the counties that are biggest soya bean producers are located in states that were crucial to Trump’s electoral victory. There is no indication that the tariffs on China are anything other than that. “We will work closely with our government to keep this important market open to the benefit of both American agriculture and Chinese consumers”, Skor said.
The ministry said the list was aimed at offsetting the losses incurred from USA tariffs on steel and imports, which are due to take effect on Friday. “China won’t change its ways”. “It is my fervent hope that the White House now fully understands the impact these actions will have on America’s ethanol industry and farmers, and we urge the administration to redouble its efforts to expand demand for ethanol here at home”. He predicted tough talks ahead.
“It is true that we are Chinese companies, but we supply American companies”, said the executive with Changhong. USA agricultural products, particularly soybeans, have been flagged as the biggest area of potential retaliation by Chinese President Xi Jinping’s administration. Beijing told Washington that USA export restrictions on some high-tech products are to blame.
While far from flawless, organizations such as the WTO have limited the scope of trade wars since the chaos of the 1930s.
The tariffs are meant to address two problems: intellectual property theft by China and a steep and persistent trade deficit.
“Many other countries are now negotiating fair trade deals with us”, Trump said on March 23.
This “China shock” of cheap goods has caused considerable disruption in the U. S.
U.S. President Donald Trump on Thursday signed a memorandum on the plan in a unilateral move that triggered a market sell-off. “Such a move threatens US economic growth and wipes out the benefits of our recent tax reform”.
“And so for us – it’s all about maintaining that position”. This is the Trump Administration’s third WTO consultation request.
“It’s remarkable how badly Xi Jinping has mishandled and damaged the U.S”.
Lighthizer added that the U.S. has 44 million workers involved in “high-technology areas” and that technology would be the “the backbone of the future” for the American economy.
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For some in China, that sends a worrying message.
