China says it's ready to fight back after United States revives tariffs

A computer screen displays an announcement on the Chinese Trademark Office website approving of the Ivanka Trump trademark to be used in wide variety of products from beverages to instant noodles and spices in Beijing China. China has approved 13 Ivank

The Commerce Ministry's statement gave no details of possible new initiatives but promised to "conscientiously implement" the joint statement by China and the USA issued May 19 in which Beijing agreed to "substantially reduce" America's trade deficit with China.

Treasury Secretary Steven Mnuchin said a trade war with China was "on hold" less than 10 days ago.

U.S. Commerce Secretary Wilbur Ross is set to travel to Beijing at the weekend amid growing tensions.

China commerce's ministry reacted harshly, saying it was surprised and saw it as contrary to the consensus both sides reached recently.

The trade escalation came after the two sides had agreed during talks in Washington this month to find steps to narrow China's $375 billion trade surplus.

"Rrelations, every time a country does an about face and contradicts itself, it's another blow to, and a squandering of, its reputation", Hua said. "However, we continue to believe that the use of tariffs puts all the burden on American companies and consumers", US Chamber of Commerce president and CEO Thomas J Donohue said yesterday.

But Chinese media had noted that the deal with the USA could see some Australian imports sidelined, including beef and wine, which had gained preferential access under Australia's Free Trade Agreement with China. "We will definitely take forceful measures to defend our legitimate interests".

The Trump administration on Tuesday announced its plans to impose 25% tariff on $50 billion of Chinese imports.

Asian financial markets tumbled on renewed worries about a U.S.

"The United States will impose a 25% tariff on $50bn of goods imported from China containing industrially significant technology, including those related to the "Made in China 2025" programme".

"For too many years, China has pursued trade practices and business policies that make it impossible for foreign companies to compete on a level playing field with Chinese companies".

Details of the investment and export controls will be announced by June 30 and the final tariff list will be published by June 15.

Navarro was not involved in the most recent round of talks in Washington.

"Trump is going on offense, reverting to his earlier instincts on China and re-empowering the trade hawks in his Cabinet", Eurasia Group said.

The State Department noted these changes will go into effect starting on June 11.

State news agency Xinhua said China hoped that the United States would not act impulsively but stood ready to fight to protect its own interests.

Other advisers have pushed for tougher action, demanding that China make substantial reforms to its economy to end the subsidies it provides to developing industries and to allow American companies equal access in the Chinese market. But he said American companies want equal treatment, "and this seems to be one of the ways to do that".

The announcement raises the stakes for the third round of talks between the two economies. The United States and other trading partners want it to go further.

While trade disputes remain a risk to China's economic outlook, the countries will likely find common ground, said Robin Xing, chief China economist at Morgan Stanley.

Related News:



Most liked

Dr M says won’t reconsider decision to drop HSR
There is no official cost estimate for the project, but Malaysian officials say it would have cost up to 60 billion ringgit. Malaysia's unilateral decision not to proceed with construction means it may now have to compensate Singapore.

Struggling Sears to close 5 IL stores, including in Springfield
The company revealed the closures as it announced revenues dropped more than 30% for the quarter to $2.9 billion. Previous year his hedge fund, ESL Investments, doled out $1 billion in financial support to the ailing retailer.

Mexico strikes back after United States announces tariffs on steel, aluminum
The EU believes these unilateral United States tariffs are unjustified and at odds with World Trade Organisation rules. As a result of these findings, President Trump imposed a 25 percent tariff on steel imports.

Google is working on an upgraded Pixel smartphone to challenge the iPhone
Earlier, Google made a $1.1 billion deal with HTC and one of its smartphone design teams, which consisted of 2000 employees. Both Android P smartphones are tipped to sport two front-facing cameras, similar to those seen on HTC's U12 Plus .