China 'ready to fight back' as United States begins trade war

US China

US China

The first stage of tariffs that target mostly Chinese technology exports may be manageable, Yu said, but if Trump imposes the full scope of tariffs he has threatened to use exporters will see their profits dwindle.

But it remained to be seen whether the American president would carry out recent threats to respond to any Chinese retaliation with maximum pressure - raising United States duties on Chinese goods in increments of $200 billion until virtually all the goods America buys from its largest trading partner are subject to duties. He warned that the U.S. tariffs will hurt a lot of foreign companies that export goods from China to the United States.

Chinese officials on Thursday said they were prepared to respond with tariffs on $34 billion worth of American goods, raising serious concerns among industry leaders in the USA agricultural, manufacturing and technology sectors and increasing the odds of billions more in import taxes for both countries in the coming months.

The government can turn that muscle on American firms, said James McGregor, chairman of the greater China region for the consultancy APCO Worldwide.

The change means China won't begin levying U.S. exports before Friday afternoon, Beijing time.

American pet-food makers, meanwhile, say they're facing more rigorous inspections at ports, which delay goods from reaching shelves and ultimately hurt sales. "A little fighting may be the only way the Trump administration clears its mind and allows everyone to sober up", the state-run Global Times said on Friday.

"There are those who believe the USA must lose and China must win", Li Xiao, a leading economics professor, said in a commencement speech last weekend at northern China's Jilin University.

The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks. Instead, Mr. Trump is recklessly antagonizing them, suggesting that they deliberately exploit the United States and threatening to impose tariffs on imported cars in addition to steel and aluminum. The motorcycle maker said this month it may move production out of the avoid European Union tariffs on its bikes. "They also will drive up the cost of manufacturing in the USA and risk numerous 1.3 million good-paying manufacturing jobs our industry supports".

Ford said it encouraged Washington and Beijing to resolve their issues over trade and that it would "continue to monitor the situation as it evolves".

Politically, the get-tough-on-China campaign is aimed at helping score points with the voters who propelled Trump to the White House even though some members of his Republican party - particularly those in farming states that could be hit by retaliation - urged a retreat.

Washington has said it would implement tariffs on $34 billion of Chinese imports on July 6, and Beijing has vowed to retaliate in kind on the same day.

Still, anti-trade rhetoric underpinned Trump's election win, and if anything the former NY real estate developer has doubled down on using tariffs in spats with both foes and allies. "We still expect demand to grow, but those expectations are dampened with each new tariff introduced", IATA Director General Alexandre de Juniac said in a statement.

On Thursday, Trump warned that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China past year.

"We want more trade, more business, more investment to be done". "A deficit is actually a good thing for the USA because we're the world's biggest economic power, and other countries are willing to hold our debt", said Hsu.

"We've generally seen freer and freer trade since World War II, and now we seem to be reversing that", David Dollar, senior fellow at the Brookings Institution in Washington and a former U.S. Treasury attache in Beijing, said in a Bloomberg Television interview on Thursday. "To put it simply, the opening fire on the entire world, including itself", Gao said. These tactics include cyber-theft and requiring American companies to hand over technology in exchange for access to China's market.

"As China is an important supporter and participant of globalization and global supply chains, many of [China's] exports are produced by non-Chinese companies", Gao noted. "In the end it will all even out - and it won't take very long!" "But the country will encounter more barriers in future development, to which we should learn to adapt", it said.

"The progress of China's economy can not be reversed by any force".

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