TRADE WAR: China ‘lining up countries’ to take on Trump in tariff battle
GETTY China has threatened to retaliate if the US is looking for a trade war
On Tuesday, the White House said it would have a final list of $50 billion in imports that would be subject to 25 percent tariffs by June 15, and two weeks later would announce investment restrictions on Chinese acquisitions of US technology. The move has infuriated China, which on Wednesday lashed out and threatened to fight back if Washington is looking for a trade war, days ahead of a planned visit by US Commerce Secretary Wilbur Ross to Beijing. According to the Wall Street Journal, citing Chinese officials, China is looking to line up countries against the US. The unnamed countries in question are mostly in Europe and Asia, where companies would benefit from China’s plans to give foreign firms more open access to its markets.
It will also respond to the threats from US President Donald Trump by imposing tariffs on up to $150 billion of Chinese goods. This latest trade escalation comes after the two sides had agreed during talks in Washington in May to find ways of narrowing China’s $375 billion trade surplus. Mr Ross is set to arrive in Beijing on Saturday where he is expected to try to get China to agree to firm numbers to buy more US goods, but the latest aggressive move from Washington could cast doubt over whether negotiations can progress to the next level. Chinese Foreign Ministry spokeswoman Hua Chunying said: "We urge the United States to keep its promise, and meet China halfway in the spirit of the joint statement," adding Chine would take “resolute and forceful” measures to protect its interests if Washington insists upon actin in an “arbitrary and reckless manner”.
GETTY Wilbur Ross is due to visit Beijing on Saturday for crunch trade talks
Tuesday’s announcement from the US came just days after the two world superpowers had announced a tentative solution. US Treasure Secretary Steven Mnuchin had said any trade war would be put on ice while negotiators thrashed out details and as part of the deal, China would reduce its trade advantage by buying more US goods such as agricultural and energy commodities. But in addition to the trade sanctions announced, the US said that by the end of June, it would announce investment restrictions and “enhanced export controls” for Chinese individuals and entities “related to the acquisition of industrially significant technology”.