China to Retaliate Against Trump's Latest Tariff Threat

(BEIJING) – China's government vowed Wednesday to take "austerity and forceful measures" as the US threatens to expand tariffs of china imports of fish sticks, apples and doors to chill global economic growth.

China gives no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on US imports. There are fears that Beijing could make the most of the automakers, retailers and others that see China as a key market.

The spiraling conflict stems from Washington's complaint that American industrial leadership

A possible second round of tariffs Tuesday by the US Trade Representative targets a $ 200 billion list of Chinese goods. That's the time of the escalation is "totally unacceptable," said a Commerce Ministry statement. It said it would be necessary to provide "necessary countermeasures" to protect its "core interests."

Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details, said, "We will take firm and forceful measures." [19659002] The USTR, the federal agency that oversees international trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies. President Donald Trump has risen to $ 500 billion of goods, or nearly all of China's annual exports to the United States.

20-23 before reaching a decision after Aug.

The first US tariff list is focused on Chinese industrial products,

The new list includes vacuum cleaners , furniture, auto parts and bicycle parts, French doors and plywood. It left untouched US-branded smartphones and laptop computers.

That "will hit the Chinese export hard sector," said Rajiv Biswas of IHS Markit in a report.

China imports far from the US than the US imports from China. That means China's imports of U.S. goods are so small that Beijing "can not match fresh U.S. tariffs," said Vishnu Varathan of Mizuho Bank in a report.

China bought $ 130 billion from U.S. goods last year. Both governments have raised tariffs on $ 34 billion worth of each other and they are said to be additional charges on another $ 16 billion. That would leave China only $ 80 billion for further retaliation

Instead, Beijing has other ways to disrupt American companies' operations. Regulators can deny or cancel licenses or launch lengthy tax, environmental or anti-monopoly investigations.

Companies are watching US chipmaker Qualcomm Inc., which has waited for $ 44 billion acquisition of NXP Semiconductors .

The European Union Chamber of Commerce in China said: "The economic impact of the conflict is already spreading. any bound for the United States do not pbad through China.

Members of Congress are still questioning Trump's tactics.

"Tonight's announcement appears reckless and is not a targeted approach," said Senate Finance Chairman Orrin Hatch in a statement.

Envoys from the two The last Secretary of the Secretary Wilbur Ross visited Beijing for talks with Vice Premier Liu He. They have given no indication when they can meet again.

They criticize Trump 's tactics but share US complaints about Beijing' s industrial policies.

On Wednesday, China 's hand stock index lost 1.8 percent and Japan' s market benchmark fell 1.1 percent. Hong Kong's hand index shed 1.3 percent.

The conflict is "far from over," warned Hannah Anderson of JP Morgan Asset Management in a report, "and the impact will be global."