Thursday, March 8, 2018

China Warns The U.S. That They Will Retaliate In The Event Of A Trade War



New York Times: China Vows Retaliation if Trump Engages in Trade War

BEIJING — China pledged Thursday to hit back at the United States if it sets off a trade war, issuing its strongest threat yet as President Trump prepares to impose more tariffs against China.

The White House is hours away from putting into effect sweeping steel and aluminum tariffs on its trading partners that have caused an international outcry. But more worrying to China are separate trade sanctions that Mr. Trump could impose under an investigation into China’s intellectual property practices. Hundreds of Chinese companies could be singled out in that process, known as a Section 301 investigation.

Speaking on the sidelines of the annual meeting of China’s legislature, Foreign Minister Wang Yi said, “History has shown that fighting a trade war has never been a correct way to solve a problem.”

“Especially given today’s globalization, choosing a trade war is a mistaken prescription,” Mr. Wang said. “The outcome will only be harmful. China would have to make a justified and necessary response.”

He did not elaborate on the measures that Beijing might take. But he urged the United States to “sit down peacefully” to constructively discuss finding a mutually beneficial solution.

Read more ....

WNU Editor: China's exports continue to rise .... China's exports surged at the fastest pace in 3 years (CNBC). More here .... China's February exports surge, trade surplus widens (ABC News)

More News On China Warning The U.S. That They Will Retaliate In The Event Of A Trade War

China promises 'necessary response' to US tariffs as trade war fears grow -- The Guardian
China warns of 'necessary response' to US trade war -- Financial Times
China's rise 'unstoppable' and it will protect its interests: minister -- Sydney Morning Herald
China says it will make necessary response in event of trade war with US -- CNBC
Trade wars 'harm the initiator': China's foreign minister just fired a warning shot at the US over Trump's tariffs -- Business Insider

6 comments:

Anonymous said...

Elon Musk spoke up today about what Trump is doing, particularly as it could affect China.

Short version, Musk is all in for reciprocity of tariffs and he said the Chinese tariffs on cars were 10 times higher than American's for Chinese made cars. He noted the Chinese demand IP transfer for US operations in China and refuse ownership > 50%.

Musk is with Trump on this one.

Jeff smith said...

Lol, China is going to retaliate how exactly. By selling us less half ass made junk. Or maybe they will steal less copies of windows.

Anonymous said...

I think as US increase tariffs US market become less competitive and other countries will increase dealing with china china

B.Poster said...

Anon # 3,

So the world is going to deal with China more and buy more junk as anon # 1 puts it. Somehow I don't think so.

The statement could be turned around and read as follows: "America warns China that they will retaliate in the event of a trade war." This would likely be POTUS who would issue such a statement. Of course when Trump dares to stand up to a foreign leader he is accused of "bluster," "insulting them," or whatever his critics can come up with at that time.

B.Poster said...

Anon # 1,

I actually suspect allot of high powered corporate leaders are on board with the Trump agenda. During the campaign the executives of many large employers instructed their teams not to publically support Trump, don't campaign for him, and do not under any circumstances sport any of stickers, hats, shirts, or any other items advertising his campaign. Where I live is one of the reddest of the red areas in a red state. As such, I can only imagine the pressure people would have been under not to do these things in a swing state!!

Privately these executives supported Trump as they made clear to key members of their team. You see supporting Trump, opposing the media, and challenging the democrat party machine can be a hazardous endeavor for someone who has much to lose.

Now having some key accomplishments behind him such as tax cuts, regulatory reforms, and according the Heritage (hardly a Trump fan) 64% of the agenda has been accomplished. Keep in mind this has all been done in the face of unrelenting and unreasonable opposition.

Now we have the Korean détente. The outstanding leadership shown by DJT during this process is the primary reason why this process is working. While much can still go wrong, as of this writing amazing progress is being made.

Unknown said...

"reciprocity "

"He noted the Chinese demand IP transfer for US operations in China and refuse ownership > 50%." - Anon

If we cannot own >590%, then neither should they.

100% reciprocity for good or for trade war.