China PM warns 'China will take measures in response' to tariffs

China PM warns 'China will take measures in response' to tariffs

Some major Chinese ports delayed clearing goods from the United States on Friday, four sources said, potentially disrupting imports worth billions of dollars as the world's top two economies head toward an outright trade war.

Chinese Commerce Ministry spokesman Gao Feng said that the proposed US tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

Despite frustration with Chinese trade practices, which require foreign firms to spill trade secrets to access the 1.3 billion-person market, US businesses have warned for months that Trump's trade threats may do more harm than good.

China has said it will not "fire the first shot" in a trade war with the United States, but its customs agency made clear on Thursday that Chinese tariffs on American goods would take effect immediately after US duties on Chinese goods are put in place. American officials worry USA industrial leadership will be eroded by Chinese plans to create tech champions in fields including robotics, biotech and artificial intelligence.

However, while no details have been provided as yet, it looks like a Chinese retaliation may be in the works.

"There should be no doubting Beijing's resolve", the newspaper said.

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

And Beijing's tactics may go beyond tariffs to include arbitrary quarantines and a costly uptick in customs inspections.

US tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday, with Beijing saying it had no choice but to respond in kind, as the two trading giants escalated a bitter row.

The price of US soybeans has plunged 17 percent over the past month on fears that Chinese tariffs will cut off American farmers from a market that buys about 60 percent of their soybean exports.

It's not merely a tit-for-tat tariff exchange, but something more fundamental. On Thursday, he suggested the possibility of tariffs on nearly $500 billion more of Chinese goods. The president said USA tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

A second tranche of 284 goods worth $16 billion is now under review and could be added to the U.S. list.

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The US trade deficit in goods with China ballooned to a record $375.2 billion past year, further stoking Trump's ire.

Shaun Rein, managing director at the China Market Research Group in Shanghai, said the Chinese government's next play could be to stoke anti-American sentiments among consumers - similar to the boycotts it ordered previous year on South Korea's Lotte Group, which caused dozens of the company's convenience stores to shutter.

Gerard Bottino/CrowdSpark/NewscomBegun, the trade war has.

"The United States has violated World Trade Organisation rules and ignited the largest trade war in economic history", China's Commerce Ministry said in a statement.

And they say the current U.S. economic strength, as well as America's soaring trade deficit in goods, means the world's largest economy can outlast its rivals in the current tit-for-tat battle, presenting Washington with a rare window of opportunity to settle old scores.

While the USA tariffs aim to cut down the trade deficit, there are worries about how China's retaliatory tariffs will hit the U.S. economy. But after three rounds of negotiations between the two sides, including a Chinese pledge to significantly increase purchases of American products, Trump chose to go ahead with the tariffs.

As per latest reports, China has vowed to respond immediately in kind. "Half of all US manufacturing jobs depend on exports, (and) one in three acres on American farms is planted for global sales".

The comments come a day before Washington and Beijing plan to implement tariffs against each others' goods in an escalating trade conflict that has rippled out to financial markets.

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute. "China deficit, this is a point that I think the administration misunderstands", she said.

Asked whether U.S. companies would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the legal rights of all foreign companies in the country. Others say they are turning their focus to Chinese consumers.

Trump said in March that trade wars are good and easy to win.

Nonetheless, despite the urging of business groups and lawmakers to negotiate a truce, there was little sign Friday that the two sides would reach a compromise anytime soon. "For example, my vehicle is from America".

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