China has warned that the United States threatens to wreck the global economy after Washington escalated the trade war on Tuesday night. Proposed tariffs on another US$200 billion of Chinese imports have been rolled out with Beijing vowing to retaliate.
This latest move in the ballooning trade conflict between the world’s two leading economies came just days after tit-for-tat duties on goods worth $34 billion took effect with the shock waves rippling across Asian markets.
Analysts have warned that spiraling tensions between the two countries could have a damaging impact on the global economy.
“For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition,” US Trade Representative Robert Lighthizer said in announcing the proposed tariffs.
“Rather than address our legitimate concerns, China has begun to retaliate against US products … There is no justification for such action,” he said in a statement.
President Donald Trump has therefore ordered the trade department to “begin the process of imposing tariffs of 10% on an additional $200 billion of Chinese imports,” Lighthizer pointed out.
Officials later issued a list of thousands of Chinese products the White House wants to hit with new tariffs, including hundreds of food products as well as tobacco, chemicals and coal.
It also includes consumer goods ranging from car tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, bicycles, golf bags, toilet paper and beauty products.
“The behavior of the US is hurting China, hurting the world, and hurting itself,” the ministry said in a statement, adding that it was “shocked” by US actions.
Reacting to the “totally unacceptable” decision by Washington, China’s Ministry of Commerce in Beijing made it clear the world’s second-largest economy would be forced to take “countermeasures.”
“The behavior of the US is hurting China, hurting the world, and hurting itself,” the ministry said in a statement, adding that it was “shocked” by US actions.
“In order to safeguard the core interests of the country and the fundamental interests of the people, the Chinese government as always will have no choice but to take the necessary countermeasures,” it said in a statement.
President Xi Jinping’s government is also planning to take action against Washington’s “unilateralist” behavior at the World Trade Organization in Geneva.
At a forum in Beijing, a senior official accused the US of “damaging the world economic order” and said it would “destroy” trade between the rival powers.
“The outburst of large-scale mutual levying of tariffs between China and the United States will inevitably destroy Sino-US trade,” Li Chenggang, the assistant minister of commerce, said.
Concerns of the dispute spinning out of control hit Asia markets. In Shanghai, the main index fell 1.78% to close at 2,777.20 points, while the smaller Shenzhen index tumbled 1.96%.
Hong Kong’s Hang Seng also suffered a bout of the jitters, falling 1.29% to finish the day on 28,311.69 points.
Elsewhere, Japan’s Nikkei 225 dropped 1.19% to close at 21,932.21 as trade-sensitive stocks, such as car manufacturers went into reverse gear. In South Korea, the KOPSI edged down by 0.59%.
“The problem is, we don’t know where this is going in the future,” Erik Norland, senior economist at CME Group, told CNBC. “That could hit business investment, it could hit employment creation and it could damage confidence as we’re seeing in the financial markets.”
– with additional reporting from AFP
EVEN A LITTLE CHILD CAN UNDERSTAND THIS, CHINA IS CROOK AND SACRIFICE THE OTHER ECONOMY OF ANOTHWER FOR HIS OWN INTEREST.CHINA IS A MASTER OF DECEPTION.
well
"urging" indeed. Everyone with common sense still intact knows that us regime is world’s biggest bully and thug.
Trump is a facist moron and a lying Bastard
chinese should open its market for fair trade..U.S. had been losing on this one sided trade for years..so its about time that the U.S.demand fair trades..china will not be able to stand this trade war they have to open their market..
Alfred Tan china is crying like a baby dragon.
China as always throws up thin skinned and very yransparant excuses and as always never at fault! They act like spoiled greedy children who finally have their hands slapped for for being the one sided greedy thugs they are. This is long overdue. They have been asked nicely to be fair and now all they can do is throw up a smokescreen and blame Trump and the U.S. lets see who blinks first?
china is abusive playing international unfair trade practices, china has to face the consequences and discipline of the international world trade community for its abuses. Set this world free from china made fake, deceptive, poisonous and dangerous to health food products. Dont buy china, buy product made in developing nations and help,them. Superpower nations has to,relocate their plant, factories and businesses to developing nations to help them to balance world trade, Japan US South Korea Canada Australia and European nations has to withdraw their businesses from china and relocate. Why entrust your products to china?
Replace US with PRC and you are totally right
Nonsense! The only one hurting bad is China. India, Brazil, Russia are hardly impacted at all. Yes Africa will be impacted indirectly, soft loans, grants, low intetest chinese funding will be affected.
Only Trump said China isn’t reading fair , do you believe him , he also said Canada has a 98 billion trade surplus when actually the U.S. has a 12 billion trade surplus with Canada
白恆禮 whaaaaattt?!*@ who is the bully and liar, look at the west philippine sea. They even don’T know the distance of their teritorry.
It s China who disrupted the world economy by manipulation of currency, dumping material to another country. Chinese mentality will lead to major war. They don’t have good relation with any of their neighbour.
Ed Molo USA is the best, and tyat is a reality! 🙂
Wilkenson A. Torda agree!!!!!
Correct
Both countries are trying to dominate the world trade.The question is who is the fairest and most honest of the two.Whoever comes on top control the world market and that’s what china wants and US is trying to stop them from doing so. China . North Korea. Russia and Iran will be please and very happy to see The Mighty United States economy collapse. In fact these countries are in aggreement to these goals by manipulating and encouraging other countries not to transact business in US dollars. We might as well go back to the barter system. In doing so it’s military might will suffer too.And they will dominate the world economy as well as the mightiest military power in the world..China attitude in the South China sea is far less adorable and not in norms of international laws .In the eyes of the world China is a more terrorist than the US.US and it’s allies will not allowed this happened . so better think thrice China.
WHILE DEMENTIA DON SHOUTS NO COLLUSION AT THE MEDIA .CHINA AND RUSSIA ARE TAKING THE VOID FROM SOUTH AMERICA..
Now the bully China has started crying all rubbish and giving sermons after its back was lit with fire by US president Trump.
Trying to amass wealth thru’ unfair trade practices & theft of technology and bully all its neighbours using coercive means, has finally hit a wall, and getting past US is no way possible for China, and if does any misadventure it’ll be at a very heavy cost, and China will better forget South China Sea & OBOR in case of full blown conflict.
Dont patronize products that made in china because its counterfiet and easy to break..