China retaliates as the trade war begins, the government and the economy

Fri, Jul 06, 2018 – 5:23 PM

[BEIJING] Three months of rhetoric have become reality

The United States has imposed the first rights on 34 billion US dollars of Chinese goods Friday and China has immediately fought back by launching A commercial battle that analysts fear could shake markets and hinder global business.

Beijing has accused its United States of violating the rules of the WTO and triggering "the biggest trade war of economic history to date".

"In order to defend the fundamental interests of the country and the interests of the people, we are obliged to retaliate," said the Chinese Ministry of Commerce in a statement

. US goods, including commodities like soybeans, corn, pork and poultry – a decision that President Donald Trump would have forced to hit China with another round of duties on products up to $ 500 billion U.S. dollars. "For industries directly affected by tariffs, the impact will be immediate and significant," said Yanmei Xie, Chinese political analyst at Gavekal Dragonomics, a Beijing company

But that is the risk of Escalation – especially the $ 500 billion Trump threat, which would cover almost all China's exports to the United States – which worries analysts. "The countdown is on what Trump will do next."

On the Chinese side, the impact of the first round of tariffs was perceived as difficult but manageable. "

" The key is to know if there will be more – a second round of revenge and retaliation and a third round, "said Shi Yinhong, professor of international relations at Renmin University. Beijing

Despite Frustration of Chinese Business Practices Requiring Foreign Companies to Disclose Trade Secrets to Access the 1.3 Billion US companies have warned for months that Trump's commercial threats could do more harm than business

"There are no winners in a trade war," said William Zarit, president of the US Chamber of Commerce in China, a statement issued a few moments before the 12:01 am deadline. Washington time.

"While our 900 member companies continue to suffer from unequal opportunities in China, they remain extremely clear: heightened tensions in international relations American-Chinese economies. Relative Some senior observers in China predict that Beijing's tactics could go beyond tariffs to include arbitrary quarantines and costly increases in customs inspections, among other regulatory issues.

Shaun Rein, According to the general manager of the China Market Research Group in Shanghai, the next action of the Chinese government could be to stir up anti-American sentiments among consumers – like boycotts that & # 39; 39, he ordered last year on the South Korean group Lotte Group. "If I were Starbucks or Apple," he said, "I'd be scared right now."

million. Trump has promised for years to attack Chinese business practices, accusing Beijing of stealing US intellectual property and claiming US $ 375 billion trade deficit with the country.

He argues that China should buy more US goods, and accused the trade with Beijing over the loss of US jobs. ouout the rust belt. (Economists say that globalization and the rise of automation have reduced the kind of manufacturing operations that US companies have done abroad in recent years.)

When From a rally on Thursday in Montana, Mr Trump doubled his position. "On the trade

Chinese officials, however, project confidence studied, claiming that the Asian nation is better equipped to withstand turbulence."

"Our commodity and labor market are relatively flexible and our foreign economic sectors" The ability to make flexible adjustments is more important, "said Guo Shuqing, chairman of the Banking and Insurance Regulatory Commission from China, in an interview with the Chinese financial newspaper Financial News

on Thursday to slow down its economic growth – and promised to match them to go forward.

"Whether through trade war or by other means, the ultimate goal is to make China o the United States, "said He Weiwen, vice president of China's Center for Globalization, Beijing." China We will not accept that, "he said, adding that" what will happen depends on the United States and that China will be ready to follow suit. "

berthing at a new world of financial consequences.

The Internet watched the voyage of a ship to Dalian Harbor in Liaoning Province. Peak Pegasus, which was carrying soybeans, accelerated to reach its destination on Friday morning, before China applied tariffs that would increase the cost of its load by 25 percent.

It is not known if the ship beat the clock.

WP