Chinese PM says a trade war benefits no-one

GETTYChina's tariff will hit the US first

GETTYChina's tariff will hit the US first

Hours before Washington's deadline for the tariffs to take effect, US President Donald Trump upped the ante on its largest trading partner, warning that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount of US imports from China past year. The New York Times reported that China's list included soybeans, a major North Dakota export.

In this July 4, 2018, photo, a robot from Chinese search company Baidu welcomes visitors to a developer event in Beijing, China.

The United States accuses China of using predatory tactics in a push to supplant USA technological dominance. Officials in Beijing reject accusations of theft and say foreign companies have no obligation to hand over technology.

Noting reports that the United States could add a tax on essentially every product shipped from China, Gao said that using the tariff stick to bully on trade runs against the trend of the times.

"Trade war concerns have shot up to the top of our concerns for investors", said Isabelle Mateos y Lago, chief multi-asset strategist at BlackRock Investment Institute in London. Americans worry that rising Chinese technological prowess might erode USA industrial leadership and prosperity.

Washington imposed tariffs on $34 billion of Chinese imports on Friday and Beijing has said it will retaliate with punitive measures on United States products worth a similar amount, including soybeans, pork and cotton.

The first round of tariffs applies to over 800 Chinese products. The Chinese Ministry of Commerce has issued a statement calling the USA move "typical trade bullying" and held that "in order to defend the core interests of the country and the interests of the people, we are forced to retaliate", according to The Washington Post. These include soybeans and automobiles.

It is unclear whether the soybean cargo, which did not arrive until after the penalties took effect, will pay the 25 percent higher tariff.

The Chinese government appeared to be looking towards the longer term as well, unveiling a new tax plan earlier this month that will boost household consumption and ease savings levels, which will help with its economic restructuring but also mitigate effects of a trade war. President Donald Trump , who has claimed that winning a trade war would be easy, has said that he's prepared to drastically raise tariffs on more Chinese imports.

China's yuan rose sharply against the dollar on Wednesday, a day after the central bank assured markets it would keep the currency stable amid growing worries about trade friction, although stocks fell.

Japan's Nikkei stock index .n225 was 1.1 percent higher after closing at a three-month low on Thursday, while Australian shares .axjo gained 0.2 percent. Hong Kong's Hang Seng index tumbled 0.9 percent to 27,995.08 and the Kospi in South Korea lost 0.8 percent to 2,247.43.

But the tit-for-tat measures have escalated the trade dispute between the world's two largest economies and the world's commodities markets are increasingly embroiled in the bust-up.

Beijing has announced changes this year including easing limits on foreign ownership in insurance and some other fields.

Trump has threatened to progressively ratchet up US penalties to a total of $450 billion in goods - which would represent the lion's share of all of China's exports to the United States.

On Thursday, Trump told reporters aboard the Air Force One that the first wave of that tariffs would quickly be followed by levies on another $16 billion of Chinese goods.

That would bring the total of targeted Chinese goods to potentially $550bn - more than the $506bn in goods that China shipped to the United States previous year.

Soybeans are the top U.S. agricultural export to China, with the trade worth $12.7 billion in 2017. Other media carried similar reports.

Just days after the European Union retaliation, Harley-Davidson said it plans to move its production of the motorcycles it sells in Europe overseas.

Forecasters say global economic growth could be reduced by up to 0.5 percentage points in 2019-20 if both sides wind up raising tariffs on $250 billion of imports.

"For soybean producers like me this is a direct financial hit", Brent Bible, a soy and corn producer in Romney, Indiana, said in a statement from the advocacy group Farmers for Free Trade. Companies want fairer treatment but will be hurt by U.S.

Recommended News

  • England vs Croatia Match Preview

    England vs Croatia Match Preview

    Croatia have needed penalty shoot-outs to overcome Denmark and Russian Federation in the knockout stage. Every match at this World Cup is such". "We'll repeat that this Sunday", said one supporter, Sebastien.
    At least 76 killed in Japan floods

    At least 76 killed in Japan floods

    The government said it would tap around $20 million in reserve funds to provide aid to those affected by the disaster. The rains have damaged key infrastructure such as highways and railways in the affected regions.
    Umtiti header sends France into World Cup final

    Umtiti header sends France into World Cup final

    In the quarter-finals, France and Brazil would have been my pick for the favourites of the remaining teams. The other semi-final pits England (No. 12) against a beat up team from Croatia (No. 20).
  • England pledge to attack Croatia in World Cup semi-final

    England pledge to attack Croatia in World Cup semi-final

    He laughed as he replied: "Most definitely". "We have a better team, and team spirit, and that is the most important thing". He was rested for the final group game against Belgium, the Three Lions' only defeat so far.
    Australia and NZ recall frozen vegetables over listeria fears

    Australia and NZ recall frozen vegetables over listeria fears

    This involves either being treated with fluids through an IV drip or a course of antibiotics. When caught early, listeria can be cured within seven days.
    LONDON FALLING: US Embassy Warns Americans of 'VIOLENT' PROTESTS During Trump Visit

    LONDON FALLING: US Embassy Warns Americans of 'VIOLENT' PROTESTS During Trump Visit

    For people more excited to see the blimp than the man, here's where to spot the 'Trump Baby', and when. These events are expected to draw large crowds and close roads.
  • Top seed Simona Halep OUT as top six fall in first week

    Top seed Simona Halep OUT as top six fall in first week

    It will be Hsieh's first appearance in the last 16 at Wimbledon where she will face Dominika Cibulkova of Slovakia. I had match point", Halep said. "That's what I think". "I just believe that I was not very positive on court".
    Iran Warns India Against Oil Imports From US and Saudi Arabia

    Iran Warns India Against Oil Imports From US and Saudi Arabia

    In fact, Yahoo Finance reported Thursday that Saudi Arabia will bring down the price of a barrel of light oil from $2.10 to $1.90. On Wednesday, Trump said in a tweet the "OPEC Monopoly must remember that gas prices are up and they are doing little to help".
    Kick-by-kick look at the shootout between Russia and Croatia

    Kick-by-kick look at the shootout between Russia and Croatia

    Cherchesov will have to do without experienced wing-back Yuri Zhirkov who is unavailable for the game against Croatia . Croatia , meanwhile, came through a shootout of their own, seeing off Denmark following a nervy 1-1 draw.
  • British poisoning victim Charlie Rowley regains consciousness

    British poisoning victim Charlie Rowley regains consciousness

    Salisbury Hospital said overnight that Charlie Rowley has experienced a "small but significant improvement" and is now conscious. They are working on the theory that Ms Sturgess and Mr Rowley handled some sort of container which the nerve agent was in.
    UK Foreign Secretary Boris Johnson resigns amid Cabinet's deep divisions over Brexit

    UK Foreign Secretary Boris Johnson resigns amid Cabinet's deep divisions over Brexit

    But leading pro-Brexit lawmaker Jacob Rees-Mogg said he did not think she would face a leadership challenge . She added that she was "sorry, and a little surprised" at his resignation after the discussions in Chequers.
    Umtiti scores only goal in win vs

    Umtiti scores only goal in win vs

    A feeling that we could do more and better, a feeling that probably Hazard was out of it, because he tried absolutely everything. It's going to be a thrilling match no doubt and don't be surprised if this one ends up going the full distance.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.