China warns U.S.

BEIJING (Reuters) – The United States is "opening fire" on the world with its tariffs, the Chinese government warned on Thursday, saying Beijing will respond to the moment trade war.

The Trump Administration's tariffs on $ 34 billion of Chinese imports are due to go into effect at 12.01 am Eastern Time on Friday (0401 GMT Friday), which is just after midday on Friday Beijing time.

U.S. President Donald Trump has risen to $ 450 billion in Chinese goods if Beijing retaliates, with the row roiling financial markets including stocks, currencies and global trade of commodities from soy beans to coal.

China has said it will not "fire the first shot", but its customs agency said on Thursday in a short statement that Chinese tariffs on U.S. goods will take effect immediately after Washington's tariffs on Chinese goods kick in.

Speaking at a weekly news conference, Chinese Commerce Ministry spokesman Gao Feng warned the proposed U.S. tariffs would hit international supply chains, including foreign companies in the world's second-largest economy.

"If the US implements tariffs, they will actually be adding tariffs to companies from all countries, including Chinese and U.S. companies," Gao said.

"U.S. Measures are essentially attacking global supply and value chains. To put it simply, the U.S. is opening fire on the entire world, including itself, "he said.

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" Asked whether US companies will be targeted with "qualitative measures" in China in a trade war, Gao said the government will protect the legal rights of foreigners in the country.

"We will continue to assess the potential impact of the US-initiated trade war on companies and will help companies possible mitigate shocks."

Gao said China's foreign trade is expected to continue on a stable path in the second half , though investors fear a full-blown Sino-US will trade a deal to Chinese exports and its economy.

He emphasized that U.S. tariffs on Chinese exports will be both Chinese and foreign firms.

Foreign companies accounted for $ 20 trillion, or 59 percent, of the $ 34 trillion exports from China, with 59 percent of firms reporting to the United States, accounting for 59 percent, Gao added.

European officials have told Reuters that China has put pressure on the European Union to issue a joint statement against US President Donald Trump's trade policies, but so far they have insisted on not taking sides.

Chinese stocks were mixed while the yuan slipped against the dollar.

CHINA MEDIA LAMBASTES U.S.

On Thursday, China's state media lambasted the United States.

The widely-read Global Times tabloid said in an editorial that China must prepare for containment by the United States.

"With strong manufacturing capability and huge market potential, China's development is difficult to suppress. But the country will encounter more barriers in future development, to which we should learn to adapt, "it said.

"While the trump administration is anxious about gains and losses, Chinese people have a future in China's future."

Both Chinese and U.S. business sources in China said that it was possible that the tariffs could be warned.

"I'm not, for now," said Tu Xinquan, a trade expert at Beijing's University of International Business and Economics, who has advised the Chinese government.

A US industry source said: "There is a 99 percent chance that tariffs go into force on Friday."

"Frankly, I do not know what action China could take at the moment that would allow the US to Not imposed tariffs, "the US source said, adding that there was no evidence the two governments had any substantive commitment to the time that could lead to the shelving of duties.

A senior Western diplomat told Reuters that there was no sign of any talks at the time between the two countries, even via back channels.

The industry source said Beijing has been unable to address the Trump administration's concerns on the subject of forced trading, Chinese industrial overcapacity, government subsidies, SOE reform, and Beijing's restrictions in cloud computing industry.