Trade War with China

The response to the new threat and blackmail is swift

China accuses Trump of 'blackmail' after new tariffs threat
Ryan MCMORROW,AFP 56 minutes ago
US President Donald Trump has unveiled plans to impose tariffs on an additional $200 billion worth of Chinese goods, on top of an already announced $50 billion tranche (AFP Photo/Brendan Smialowski)
Beijing on Tuesday accused Donald Trump of "blackmail" and warned it would retaliate in kind after the US president threatened to impose fresh tariffs on Chinese goods, pushing the world's two biggest economies closer to a trade war.

Trump said on Monday he had asked the US Trade Representative to target $200 billion worth of imports for a 10 percent levy, citing China's "unacceptable" move to raise its own tariffs.

He added he would identify an extra $200 billion of goods -- for a possible total of $450 billion, or most Chinese imports -- "if China increases its tariffs yet again".

"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States," Trump said in a statement.

Last week, he announced 25 percent tariffs on $50 billion in Chinese imports, prompting Beijing to retaliate with matching duties on US goods.

The US leader warned Friday of "additional tariffs" should Beijing hit back with tit-for-tat measures.

"The trade relationship between the United States and China must be much more equitable," he said in explaining his latest decision.

"I have an excellent relationship with President Xi (Jinping), and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world."

China's commerce ministry immediately responded by saying the US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed international society".

"If the US acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures."

The news hit stock markets in Asia, where Shanghai shed three percent in the morning, Hong Kong lost more than two percent and Tokyo was one percent lower.

Trump is moving forward with the measures after months of sometimes fraught shuttle diplomacy in which Chinese offers to purchase more American goods failed to assuage his grievances over a widening trade imbalance and China's aggressive industrial development policies.

China had offered to ramp up purchases of American goods by $70 billion to help cut its yawning trade surplus with the United States, whereas Trump had demanded a $200 billion deficit cut.

- 'Unacceptable' -

The China trade offensive is only one side of Trump's multi-front battle with the United States' economic partners as he presses ahead with his protectionist "America First" agenda.

Since June 1, steel and aluminium imports from the European Union, Canada and Mexico have been hit with tariffs of 25 percent and 10 percent, respectively.

"This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods," Trump said of China's retaliatory tariffs.

now I read
China MOC spokesperson makes remarks on White House trade statement
Xinhua| 2018-06-19 10:26:12

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A spokesperson of China's Ministry of Commerce (MOC) said Tuesday that if the United States loses its rationality and unveils another list of Chinese products for additional tariffs, China will have no choice but to take comprehensive measures combining quantitative and qualitative ones to resolutely strike back.

After unveiling plans to impose additional tariffs on Chinese goods worth around 50 billion U.S. dollars, the United States went even further by threatening to identify 200 billion U.S. dollars worth of Chinese products for additional tariffs.

"Such practice of imposing extreme pressure and blackmailing is contrary to the consensus the two sides have reached through rounds of consultations, and disappoints the international community," the spokesperson said.

"The trade war waged by the United States is against both the law of the market and the development trend of today' s world. It undermines the interests of the Chinese and American people, the interests of companies and the interests of the people all over the world," said the spokesperson.

The response taken by China aims to safeguard and defend not only the interests of the Chinese nation and the people, but also free trade regime and the common interests of mankind, said the spokesperson.

No matter how external environment changes, China will follow its established rhythm, stick to the vision of making development people-centered, resolutely advance reform and opening up, resolutely promote high-quality economic development, and accelerate the development of a modern economy, said the spokesperson.

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now I read
MOFA: China urges US to return to rationality
Updated 2018-06-19 23:03 GMT+8

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China hopes that the US can return to rationality and stop the acts that injure others and themselves, Chinese Foreign Ministry spokesperson Geng Shuang said at a regular press conference on Tuesday.

The remarks came after US Secretary of State Mike Pompeo on Monday termed China’s trade practices as “predatory economics 101” at the Detroit Economic Club.

Geng said what the US said is not the truth and that it only accused China of nothing so that they can cover their act of unilateralism and protectionism.

Recently, the US has ignored the consensus that has been reached between China and the US, changed attitude continuously, and initiated the trade war again. This act has made the US lose trust in the rest of the world, it not only harms the interests of peoples and enterprises of China and the United States but also hurts the interests of other countries across the globe.

China doesn't want a trade war, but also is not afraid of a trade war, Geng said, adding that if someone initiated a trade war, the country will take effective measures to safeguard its own legitimate rights and interests, support the economic globalization and multilateral trading system, and will continue to promote the people-centered reform and opening up and the development of its economy at the current pace, no matter how the environment changes.

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Yura you need to read this article to widen your horizon
The root of the problem is exaggerated and unrealistic insecurity due to China rise that maybe just maybe Chinese system of government is more efficient than demomcrazy


The West Really Hates China!
West Is Spreading Sick, Racist Anti-Chinese Nihilism

China is different. There is no ‘mercy’ for China, in the West. By many standards, the greatest and one of the oldest cultures on Earth, has been systematically smeared, insulted, ridiculed and arrogantly judged by the opinion-makers, propagandists, ‘academia’ and mainstream press with seats in London, New York, Paris and many other places which the West itself calls the centers of ‘erudition’ and ‘freedom of information’.

There is no "mercy" for China because China presents the greatest "threat" to the current world order. There is a special hatred for Chinese (a generalisation but a careful look around will show all for those who can still think). China is held to impossible standards and it is focused with unreasonable scrutiny because China's rise threatens to destroy the comfortable life those at the top of the dominance hierarchy have built. When it was the Soviets that threatened it, the propaganda focused on them, when it was the Japanese, the cartoons of the era focused on dehumanising them and making them the evil bogeyman. Only consolation with being on the receiving end of these efforts is the predictability. If Chinese can use it to their advantage, China may not end up like Japan or Soviet Union.

Jura said:

on top of us.cnn.com is
Trump threatens China with new tariffs on another $200 billion of goods

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Trump is gettin' gassed. Everybody's doing 25% tariffs and he goes down to 10%? Why? Cus he's out of ammo and knows he's going to start cutting into American consumers to prop up his image of not backing down. He's hoping that 10% increase will be barely noticed by the consumer especially if it's over a great range of products, which might lead them to be unable to distinguish the modest price increases as being caused by his tariffs or natural inflation. The 25% tariffs were meant to keep Chinese products from competing in America; the 10% tariffs are him trying to cut into America's baseline as little as possible while acting macho. If he keeps cutting, It's all pain from here on out. This meek 10% crap is the moment Drago stumbled back when Rocky cut him across the eyebrow.

10% on majority consumer products will have huge financial impacts on American consumers if it goes through. It will be felt but people can deal with it ie it's not the end of the world. Spending margins are tight enough for most common people who buy mostly Chinese manufactured goods. Sure people can stop buying useless cheap junk and not lose sleep and probably better for everyone on the planet including Chinese working in those factories because as much as CPC wants to continue milking every teat until they are dry, China is no longer undeveloped in terms of social measures, infrastructure, technology bases, and industries. The goods that are necessary for day to day life will take time to shift manufacturing bases if it goes down that path and it will come at the expense of businesses rather than manufacturers.

The main reason why China dominates the manufacturing industry isn't only cheaper labour (i'm sure there are places with even cheaper labour now). Rather it is the developed transport infrastructure, the willingness to do heaps of overtime without higher rates (call it what you will but it's one of the things that brought China out of poverty in the first place), on time production, meeting quality expectations, deadlines, delivery and receiving of goods etc etc. No country can match with cost in consideration. So businesses can either go broke, consumers can buy less or spend more (if they have more), or they can try setting up American manufacturing elsewhere which will take years if not longer and then may end up being horrible. If they honestly think made in China is bad, let them go to India and try get the same end product for this money. So few exist because nature > propaganda. These trade ecosystems exist the way they do for a reason, it is Darwinian evolution in motion. China dominates manufacturing because they offer the best overall deal.

I should reiterate that the reason 10% will be felt is because many living and business operation costs will go up and the multiplier effect will continue to work for a while to diminish the effective income of average people. It won't be so much that pain is felt but for people already only just getting by, 10% may result in their overall living costs going up a few percentage points. The economic effect of this on an entire nation of people is significant enough to cause a disturbance for years. ceterus parabus.

There's good reason why "trade wars" and protectionism is universally disliked by intelligent people. If the contention is that China is playing the game unfairly, let's proceed and take things all the way to the bottom and see. Everyone goes down together, net effect more or less zero unless the one who is crafty and can adapt better takes advantage of a predictable situation. US has more tools to play this game though. You can't be poor when you own all the instruments for manipulating the value of all commodities and you determine the supply of the global reserve currency with all the macro and micro tools at your service.

I am interested to see how China responds. The balance of trade heavily favours the US side using tariffs as a tool, so China will likely have to find other ways to respond. The Chinese could target US business operating in China to start. That seems like a logical move after the room for tariffs runs out.

The Chinese side must be weary of the long term effects of US punitive trade actions. The US represents 20+ percent of Chinese total exports and is largely responsible for their overall trade surplus. A long term change in trade with the US could have a negative effect on the Chinese current account.

I think it will be interesting to see how this issue develops.

SlothmanAllen said:

I am interested to see how China responds. The balance of trade heavily favours the US side using tariffs as a tool, so China will likely have to find other ways to respond. The Chinese could target US business operating in China to start. That seems like a logical move after the room for tariffs runs out.

The Chinese side must be weary of the long term effects of US punitive trade actions. The US represents 20+ percent of Chinese total exports and is largely responsible for their overall trade surplus. A long term change in trade with the US could have a negative effect on the Chinese current account.

I think it will be interesting to see how this issue develops.

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250 billion of trade out of 13 trillion economy represent what less than 1-3/4 % of GDP
No China is not worry about trade war I say let it rip Let see who can last longer
Don't forget that China was subject to total embargo from 1949 to 1972 when the economy is so much smaller and China is isolated politically and economically then

China can offset the effect of trade war by keep expanding the infrastructure in the western China and improve the social benefit of Chinese people. PLus OBOR will provide work for Chinese industry for decade to come Which come at opportune time for China . As I said using blackmail is a bit too late now the horse has left the barn
There are many ways to retaliate against the Trump tariff say add tariff to junk Holywood or Apple . Make life difficult for American export in China using custom or Initiate anti monopoly law against American company

The experience of American embargo does not show result advantageous to US If anything it will spur China to become more independent in technology mark my word