China will not "surrender" to United States demands in trade talks

Frederick Owens
September 15, 2018

A survey from AmCham China and AmCham Shanghai found that almost two-thirds of more than 430 USA firms in China say the tariffs Trump placed on billions of dollars of Chinese goods this summer have hurt their businesses.

AmCham China and AmCham Shanghai urged the Trump administration to re-think its approach.

Kyle Bruns packs a live lobster for shipment to Hong Kong at The Lobster Company in Arundel, Maine, on Tuesday.

China said it will not buckle to U.S. demands in any trade negotiations, reported by Reuters.

The reported green light for the tariffs had an immediate effect on financial markets. It led US stocks to trade lower, fueled drops in the Chinese yuan in offshore trading and gains in the dollar index, and sent the S&P 500 index negative. Technology shares led declines, with Apple falling as much as 1.7 per cent.

Beijing has issued a list of $60 billion of American products for retaliation if Trump's next tariff hike goes ahead. But the Chinese government has thus far refused to budge on the White House's demands and vowed to retaliate against every American punch.

Chinese Foreign Ministry spokesman Geng Shuang told reporters on Thursday that China welcomed the invitation, and the two countries were discussing the details.

Trump was asked during the meeting whether he was concerned about the impact of the new tariffs on negotiations with China. Beebe said that could be the consequences of price increases or the psychology around how people make purchasing decisions.

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The Trump administration is preparing to activate tariffs on US$200 billion worth of Chinese goods, hitting a broad array of internet technology products and consumer goods from handbags to bicycles to furniture.

Also Thursday, the European Union Chamber of Commerce in China said one in six of its members that responded to a survey are delaying investment or expansion.

In the ongoing trade dispute between the USA and China, perhaps no companies are more affected than American automakers that are manufacturing their cars in China.

On Thursday, Trump reportedly met with trade advisors, including Treasury Secretary Steven Mnuchin who is spearheading the effort to jumpstart talks with Beijing, where he indicated that he was not anxious about the impact of tariffs. Disclosure on Wednesday that the US sought to renew the talks rallied USA stocks and emerging-market assets.

"This survey affirms our concerns: tariffs are already negatively impacting U.S. companies and the imposition of a proposed US$200 billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.

Efforts to end the trade dispute have fizzled so far.

But Larry Kudlow, head of the White House Economic Council, said Wednesday on the Fox Business Network that Treasury Secretary Steven Mnuchin had invited senior Chinese officials to rekindle the talks.

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