Published: Sat, August 04, 2018
Global | By Craig Ferguson

China to Respond If US Provokes Escalation of Trade War - Foreign Ministry

China to Respond If US Provokes Escalation of Trade War - Foreign Ministry

The United States has adopted an "escalate to negotiate" strategy towards China, threatening a dramatic hike in tariffs to try to force a resumption of trade talks while the U.S. economy remains strong and as elections approach in November'.

White House press secretary Sarah Huckabee Sanders countered by telling reporters Friday that "instead of retaliating, China should address longstanding concerns about its unfair trading practices".

The U.S. has imposed tariffs targeting aerospace, robotics and other forms of technology, while China retaliated with tariffs on agricultural products, seafood and cars, among other things.

The caveat, with other comments, suggested Powell believed the Fed might be moving too aggressively to tighten U.S. monetary policy. But they have rejected changing technology development plans they see as a path to prosperity and global influence. Mills has been largely avoiding emerging-markets stocks, which will bear the brunt of any trade-related global economic slowdown.

China will impose tariffs on $60 billion in US goods if the United States presses ahead with its latest trade threats, Beijing warned Friday.

China has urged the United States to "return to rationality" as it seeks to resolve a trade dispute between the sides. China responded with tariffs on $34 billion in US goods, including a wide range of agricultural products. While that might be deflated by some defensive or pre-emptive responses to the USA tariffs, the U.S. economy has been turbo-charged by Trump's deficit-funded tax cuts and increased government spending.

"China trade tariffs weighed on both output and sentiment", said Aakanksha Bhat, Asia economist at HSBC in Hong Kong.

U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet U.S. demands and has imposed retaliatory tariffs on U.S. goods. In this scenario, to which Moody's assigns a 60% probability, USA gross domestic product would be reduced by about 0.1 percentage point at the peak of the trade confrontation, in mid 2019.

Chinese authorities warned earlier that if the dispute escalated, they would adopt unspecified "comprehensive measures".

"We would advise the United States to correct its attitude and not try to engage in blackmail".

Trump's tariffs target goods the White House says benefit from industrial policies such as "Made in China 2025", which calls for developing Chinese competitors in robotic, artificial intelligence and other fields. But President Trump has done just the opposite, signing a large corporate tax cut that makes foreign investment in the US more attractive, while forcing Congress to scale back its plans to place more restrictions on Chinese investment in the United States.

Geng gave no indication whether the two sides were preparing to resume negotiations. "We hope that those directly involved in the United States' trade policies can calm down, carefully listen to the voices of USA consumers.and hear the collective call of the worldwide community".

The Asian giant has considered the higher US tariffs as a violation of the World Trade Organization norms and that a threat would only collapse the industrial and global value chain.

Mickey Kantor, who was US trade representative under President Bill Clinton, warned that a trade war with China will take a toll on a USA healthy economy that from April through June registered the fastest growth since 2014.

London Metal Exchange copper futures have been trending lower since reaching their peak for this year so far in early June, closing at $6,172 a tonne on Wednesday.

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