China has accused the United States of engaging in “trade bullyism”.
It also accused Donald Trump of
intimidating other countries to submit to his will through measures such
as tariffs, the official Xinhua news agency said.
intimidating other countries to submit to his will through measures such
as tariffs, the official Xinhua news agency said.
The United States and China imposed fresh
tariffs on each other’s goods on Monday, as the world’s biggest
economies showed no signs of backing down from an increasing bitter
trade dispute that is expected to knock global economic
growth.
tariffs on each other’s goods on Monday, as the world’s biggest
economies showed no signs of backing down from an increasing bitter
trade dispute that is expected to knock global economic
growth.
Beijing said it was willing to restart
trade negotiations with the United States if the talks are “based on
mutual respect and equality,” Xinhua said, citing a white paper on the
trade dispute published by China’s State Council.
trade negotiations with the United States if the talks are “based on
mutual respect and equality,” Xinhua said, citing a white paper on the
trade dispute published by China’s State Council.
U.S. tariffs on $200 billion worth of
Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of
U.S. products took effect at midday in Asia, though the initial level
of the duties was not as high as earlier feared.
Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of
U.S. products took effect at midday in Asia, though the initial level
of the duties was not as high as earlier feared.
The two countries have already slapped tariffs on $50 billion worth of each other’s goods earlier this year.
Chinese products hit with new U.S. duties
include vacuum cleaners to internet-connected devices, while U.S. goods
targeted by Beijing include liquefied natural gas and certain types of
aircraft.
include vacuum cleaners to internet-connected devices, while U.S. goods
targeted by Beijing include liquefied natural gas and certain types of
aircraft.
Though a senior White House official last
week said the United States will continue to engage China for a
“positive way forward,” neither side has signaled willingness to
compromise.
week said the United States will continue to engage China for a
“positive way forward,” neither side has signaled willingness to
compromise.
The U.S. official said on Friday there
was no date set for the next round of talks. The Wall Street Journal
reported that China, which has accused Washington of being insincere in
trade negotiations, has decided not to send Vice
Premier Liu He to Washington this week.
was no date set for the next round of talks. The Wall Street Journal
reported that China, which has accused Washington of being insincere in
trade negotiations, has decided not to send Vice
Premier Liu He to Washington this week.
Economists warn that a protracted dispute
will eventually stunt growth not just in the U.S. and China but across
the broader global economy.
will eventually stunt growth not just in the U.S. and China but across
the broader global economy.
The trade tensions have also cast a pall
over broader relations between Beijing and Washington, with the two
sides butting heads on a growing number of issues.
over broader relations between Beijing and Washington, with the two
sides butting heads on a growing number of issues.
China summoned the U.S. ambassador in
Beijing and postponed joint military talks in protest against a U.S.
decision to sanction a Chinese military agency and its director for
buying Russian fighter jets and a surface-to-air missile
system.
Beijing and postponed joint military talks in protest against a U.S.
decision to sanction a Chinese military agency and its director for
buying Russian fighter jets and a surface-to-air missile
system.
Trade talks in Washington last month produced no meaningful progress.
Rob Carnell, chief Asia economist at ING,
said in a note to clients that in the absence of any incentives Beijing
would likely hold off on any further negotiations for now.
said in a note to clients that in the absence of any incentives Beijing
would likely hold off on any further negotiations for now.
“It would look weak both to the U.S. and
at home,” he said, adding that there is “sufficient stimulus in the
pipeline” to limit the damage of the latest tariffs on China’s growth.
at home,” he said, adding that there is “sufficient stimulus in the
pipeline” to limit the damage of the latest tariffs on China’s growth.
“The U.S.-China trade war has no clear end in sight.”
China may also be waiting for U.S.
mid-term elections early next month for any hints of changes in
Washington’s policy stance, Carnell added.
mid-term elections early next month for any hints of changes in
Washington’s policy stance, Carnell added.
“With generic polls favoring the Democrats, they may feel that the trade environment will be less hostile after November 6.”
The U.S. administration will levy tariffs
of 10 percent on the $200 billion of Chinese products, with the tariffs
to go up to 25 percent by the end of 2018.
of 10 percent on the $200 billion of Chinese products, with the tariffs
to go up to 25 percent by the end of 2018.
Beijing set its new levies on $60 billion
of U.S. goods at 5 and 10 percent and warned it would respond to any
rise in U.S. tariffs on Chinese products accordingly.
of U.S. goods at 5 and 10 percent and warned it would respond to any
rise in U.S. tariffs on Chinese products accordingly.
U.S. President Donald Trump on Saturday
reiterated a threat to impose further tariffs on Chinese goods should
Beijing retaliate, in line with his previous comments signaling that
Washington may move to impose tariffs on virtually
all imported Chinese goods if the administration does not get its way.
reiterated a threat to impose further tariffs on Chinese goods should
Beijing retaliate, in line with his previous comments signaling that
Washington may move to impose tariffs on virtually
all imported Chinese goods if the administration does not get its way.
China imports far less from the United States, making a dollar-for-dollar match on any new U.S. tariffs impossible.
Instead, it has warned of “qualitative” measures to retaliate.
Though Beijing has not revealed what such
steps might be, business executives and analysts say China could
withhold exports of certain products to the U.S. or create more
administrative red tape for American companies.
steps might be, business executives and analysts say China could
withhold exports of certain products to the U.S. or create more
administrative red tape for American companies.
Some analysts say there is also a risk
that China could allow its yuan currency to weaken again to cushion the
blow to its exporters.
that China could allow its yuan currency to weaken again to cushion the
blow to its exporters.
