China says it's ready for protracted trade war with US

Enlarge this image

Enlarge this image

In addition, Beijing announced on Friday that it would add duties ranging from 5 to 25 per cent on an additional US$60 billion in U.S. goods if the Trump administration went ahead with similar action, warning that further countermeasures were ready at any time.

China's finance ministry said duties ranging from 5 per cent to 25 per cent would be levied on 5,207 kinds of imports from America if the U.S. implemented its proposed taxes on another $200bn of Chinese goods.

China's proposal to add a new round of tariffs on $60 billion worth of goods it imports from the United States - retaliation for expanding planned tariffs by the Trump administration - is only hitting one commodities sector hard: liquefied natural gas shipments.

China imported about 313,000 barrels per day of USA crude in the first six months of 2018, according to vessel-tracking and port data compiled by Thomson Reuters Oil Research and Forecasts.

"Every country on earth wants to take wealth out of the US, always to our detriment", Trump tweeted, "I say, as they come, Tax them".

President Donald Trump and China have been engaged in a tense trade war for over five months. The U.S. tariffs now in place or threatened add up to nearly half of the value of goods it imported from China previous year. That's in stark contrast to the US' one-size-fits-all tariff approach, which was ill-considered, they said.

While the U.S. is trying to conclude trade disputes quickly, China is prepared for a "protracted war" and doesn't fear sacrificing short-term economic interests, according to Chinese state media.

President Trump vowed Saturday to continue imposing tariffs as a central part of his economic agenda and called his critics "fools", pivoting sharply away from the free-trade message that senior advisers had tried to erect in recent weeks.

Noticeably absent from the latest list is polysilicon, the main ingredient in solar cells, which the USA does export to China.

"We used to pay just 24 percent tariffs for U.S. pork in China", he explains.

Mr Trump continued his focus on tariffs on Sunday morning, tweeting that the duties are working "big time" and that imported goods should be taxed or made in the US.

China immediately expanded its own list of types of US products to be tariffed, including farm products, cars and crude oil.

The Trump administration has issued temporary emergency financial support of $12 billion to help farmers hard-hit by China's retaliatory tariffs such as soybean farmers.

"I don't see why he would come to the conclusion that China's economy is not doing well". From Apple to General Motors, a long list of large US enterprises have transferred extensive operations to China and could be vulnerable to any response from Beijing.

"China's countermeasures are rational", the Global Times, a tabloid run by the official People's Daily, said in a commentary.

U.S. agricultural producers in particular are feeling the sting of the trade war. "Time will prove that the US eventually makes a fool of itself", the paper said.

This prompted an imposition of taxes on Chinese steel and aluminium imports.

Latest News