Trump Risks Trade War with China
by Stephen Lendman (stephenlendman.org - Home - Stephen Lendman)
China’s Global Times called trade war “akin to the Trump administration ‘playing with fire,” saying “it will end in disaster for the US.”
On Friday, Beijing’s Ministry of Commerce (MOFCOM) responded to Trump’s imposition of $60 billion in tariffs on Chinese imports.
It’s imposing 15% tariffs on 120 types of US products, including fruits, nuts, wine and steel pipes - 25% import levies on another eight categories of products, including pork and recycled aluminum - these in response to US tariffs on Chinese steel and aluminum.
More to come once further information is released on Chinese products the Trump administration intends targeting.
They include information technology, electronics, robotics, aviation and aerospace products, according to trade advisor Peter Navarro - a full list to be available in 15 days, Trump’s trade representative Robert Lighthizer explained.
They’ll become effective after an official notice and comment period.
Trump also intends imposing restrictions on Chinese investments in America, Treasury Secretary Mnuchin to announce administration policy within 60 days - an effort to curb Beijing’s ability to acquire US technology.
MOFCOM said it intends legal action against Washington through the WTO, aiming “to maintain the stability of global trading rules,” hoping to avoid a mutually destructive trade war.
China’s embassy in Washington said “(i)f a trade war (is) initiated by the US, China would fight to the end to defend its own legitimate interests with all necessary measures.”
During a Thursday White House signing ceremony, Trump said he asked China’s Xi Jinping for an “immediate” $100 billion reduction in Beijing’s trade surplus with America, adding:
“We have a tremendous intellectual property theft situation going on” in China. We want recipr(osity). If they charge us, we charge them the same thing.”
Once imposition of tariffs begins, it’s unclear how far they’ll go, given China’s intention to respond appropriately.
China’s Chongyang Institute for Financial Studies dean Wang Wen/consultant to Beijing’s leadership explained Washington “has to know that China is not Iraq.”
“China is not Russia. China is not Iran. China is full of measures to respond to US activities. The US shouldn’t consider China to be a paper tiger.”
“The US, through its actions, cannot interfere with China’s domestic policy. Any reforms we undertake will be done at our own pace.”
China’s Formal Response to Trump’s Thursday Tariffs Announcement
“The United States persisted in conducting the ‘301 investigation’ and announced relevant trade measures, ignoring rational voices, and in disregard of the mutually-beneficial nature of China-US trade relations and the consensus reached by the two countries of managing differences constructively through consultations.”
“It is a typical unilateral trade protectionist action. China is strongly disappointed and firmly opposes such an action.”
“Bearing in mind the principles of mutual respect and win-win cooperation, China has demonstrated sincerity in making reasonable suggestions to the US, and has made great efforts to address the current trade imbalance between China and the US.”
“China does not want a trade war with anyone. But China is not afraid of and will not recoil from a trade war.”
“China is confident and capable of facing any challenge. If a trade war were initiated by the US, China would fight to the end to defend its own legitimate interests with all necessary measures.”
“The actions undertaken by the US are self-defeating. They will directly harm the interests of US consumers, companies and financial markets. They also jeopardize international trade order and world economic stability.”
“We urge the US to cease and desist, make cautious decisions and avoid placing China-US trade relations in danger with the purpose of hurting others that eventually end up hurting itself.”
The die was cast in Washington by Trump. It remains to be seen how far things go.
US, Chinese, and global economic conditions hang in the balance if things get out of hand.
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