Here's what we know about China's stance as tariff hour nears

Frederick Owens
July 6, 2018

The powerful US Chamber of Commerce, a principal corporate lobby, said this week that retaliation either already in force or expected to come from China, Canada, Mexico, the European Union and others against Trump's tariffs was already affecting $75 billion in US exports.

Trump has threatened to impose new taxes on up to $416 billion worth of goods in coming months if China doesn't meet his trade demands.

The WTO report did not name any particular country, but since the start of the year US President Donald Trump has launched a series of tariffs to punish what he sees as unfair trade, by allies and economic rivals alike.

USA carmaker Ford Motor Co (F.N) said on Thursday it has no plans to hike retail prices of its imported Ford and Lincoln models in China, despite the steep additional tariffs on imported US vehicles set to come into play on Friday. "To put it simply, the opening fire on the entire world, including itself", Gao said.

On top of that, China pays $24 billion a year for foreign patent and copyright licenses, according to government data.

Some other media were more circumspect, with the English-language China Daily yesterday calling on China to be confident but not arrogant.

Several southern states, many of which also backed Trump in the election, also risk being hit.

Wang Shouwen, vice minister of commerce, said at a news conference in Beijing last week that China has not ramped up regulations to deter US imports.

But officials in Beijing say China is prepared to do what's needed to safeguard its national interests.

Kennedy say he thinks the Trump administration's enthusiasm for the conflict "will erode as the economic pain and political fallout from a trade war begin to take hold".

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The Customs and Border Protection's website confirmed on Thursday that the new tariffs on Chinese goods will take effect Friday at 12:01 a.m.

"These tariffs target the vital parts and components used in equipment manufacturing throughout the U.S.", Slater said.

Up until recently, China had been simultaneously pursuing the two contradictory tasks of trying to reform the WTO and building a replacement to it, which provided the country with as many choices as possible for flexibly reacting to fast-changing scenarios in worldwide affairs, but the latter goal is now taking precedence following Trump's signals that he'll be downgrading the globalist body's importance in influencing America's new semi-protectionist economic policies that largely run counter to the same rules the U.S. itself originally promulgated.

Ford said it encouraged Washington and Beijing to resolve their issues over trade and that it would "continue to monitor the situation as it evolves".

"If this ends at $34 billion, it will have a marginal effect on both economies, but if it escalates to $500 billion like Trump said then it's going to have a big impact for both countries", Chen said.

"We want more trade, more business, more investment to be done".

"We can expect further damage to the USA economy, workers, companies and consumers", he said. USA and Chinese companies will now find it costlier to trade with each other, meaning less demand and higher prices.

But economists also say the trade war comes as the period of synchronized expansion among the world´s largest economies, which is bolstering demand for USA goods and services, may be starting to run out of steam, raising the risks that tariffs could harm growth. Trump has added to the tension by threatening new tariffs on cars.

It's also possible that Europe could become ensnared in the U.S. These tactics include cyber-theft and requiring American companies to hand over technology in exchange for access to China's market. They are undoubtedly reluctant to do much more in response to Mr. Trump's tariffs than impose reciprocal measures of their own, as long as there is any hope of negotiating a settlement. "But the country will encounter more barriers in future development, to which we should learn to adapt", it said.

A waiter delivers a lunch of lobster, that was imported from Boston, U.S., at a sea food restaurant in Beijing, China July 5, 2018. China's economy grew by 6.9% 2017 and the government has set a target of 6.5% for the current year.

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