China ready to fight as US begins trade war | News from the world

A long-running trade war between the United States and China began Friday as the United States imposed duties on $ 34 billion worth of Chinese goods. China has promised to immediately lift its own rights on a similar amount of US imports.

Minutes after the entry into force of US tariffs at 0:01 GMT, a spokesman for the Chinese Ministry of Commerce said: "China has promised not to fire the first shot, but to save the fundamental interests of the country as well as those of the people, it is obliged to retaliate, "according to Xinhua

. published a series of editorials criticizing the United States and highlighting the country's readiness for a trade war. Chinese companies and investors have shown the worst, while economists have warned that any impact on the economy would be minimal.

"If the United States wants to start a trade war with China, then so be it." A bit of fighting is perhaps the only way for the Trump administration to clean up and allow everyone to sober up, "said the newspaper" Global Times "on Friday.

"The Trump administration behaves like a gang of thugs with its shakedown from other countries, especially China," an article in English in the China Daily said. On Thursday, a spokesman for the Chinese Ministry of Commerce said that the United States would "open fire on the whole world and open fire on itself."

The Chinese central banker said that Trump had promised 25 percent of Friday's $ 34 billion, followed by $ 16 billion in a few weeks, would reduce China's GDP by 0.2 percentage point and "l & rsquo; Overall impact would be limited, "according to Xinhua.

Yet, Chinese investors and companies were worried. The Shanghai Composite index fell 1.1%, after reaching its lowest level in two years this week. Chinese manufacturers have already been hit by a strengthening of the yuan that has made exports more expensive.

"One of the biggest competitive advantages of Chinese exports is their low price.After the imposition of tariffs, the prices of products made in China will increase and we will lose our comparative advantage," said one representative of Sanhua Micro-Channel, which manufactures components for air conditioners in the eastern province of Zhejiang, China

. had already moved some of its production to the United States and Mexico and would probably move more. Others say that they are turning to Chinese consumers.

"China is a big market for us, and if we can conquer our own market, we will be less affected by the trade war," said a spokesman for Topsun, a furniture manufacturer in Zhejiang Province.

Trump threatened to raise tariffs on China roughly the total value of Chinese exports to the United States last year of $ 506 billion. He told reporters aboard Air Force One on Thursday, "You still have 16 (billion dollars) in two weeks, and then, as you know, we have 200 billion dollars outstanding and after the 200 billions of dollars, we have $ 300 billion outstanding. "Analysts say tariffs are not the most effective way to put pressure on China, which the United States accuses of commercial practices Unfair and Stealing Intellectual Property to US Firms.

Mary Lovely, professor of economics at Syracuse University, and Yang Liang, researcher, discovered that 87% of electronic products originated from multinationals and joint ventures rather than Chinese companies

The Chinese economy is no longer dependent on exports Domestic consumption now accounts for more than half of the country's GDP Exports to the United States represent only 19% of all Chinese exports.

"Reciprocal tariffs on US $ 50 billion of goods in both directions will have a minimal impact in China," writes Andy Rothman, investment strategist at Matthews Asia, on a blog this week. China's tariffs on major US exports such as soybean, sorghum and auto are targeting Republican areas ahead of the mid-term elections. "The impact on the American political environment is, however, likely to be much bigger," he said.

The US high-tech sectors, such as new energy vehicles, robotics and other forms of intelligent manufacturing, which form the industrial plan "Made in China 2025" of the country.

Cheng Dawei, a professor of international business at Beijing Renmin University, says that these industries are still in their infancy and that they need channel inputs. Global sourcing.

"But tariffs will bring double results. China is never the only one to suffer, "said Cheng." Imposing high tariffs definitely hurts China, but we will not let ourselves be shot down, "she said.

Report Supplement of Wang Xueying