China eyes countermeasures

Negotiations cannot happen with ‘domineering attitude’

A true trade war détente can be reached only when China is fully prepared to retaliate and does not compromise on its legitimate interests, analysts said Tuesday amid speculations that Washington and Beijing are quietly seeking solutions to their differences on trade.

“China is always committed to solving trade frictions and disputes through negotiations and coordination. The door to negotiations is always open, but they will not take place when one side is making requests with a domineering attitude,” Chinese Foreign Ministry spokesperson Hua Chunying said at Tuesday’s daily briefing.

Hua made the remarks in response to a report from the Wall Street Journal on Monday suggesting that “China and the US are quietly seeking

trade solutions.”

White House officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more US-made semiconductors, said a person familiar with the discussions, Reuters reported on Tuesday.

With China and the US standing on the brink of a trade war, it’s time for the two sides to talk, said Diao Daming, an associate professor at the Renmin University of China.

After US President Donald Trump signed a $60 billion tariff memorandum, the US Trade Representative (USTR) will create a list of targeted goods within 15 days and then allow a 30-day period for public comment.

If the US finally acts on Trump’s memorandum, China will surely retaliate, but it is unwise to give up on negotiations before any of the tariffs are put in place, Diao said.

“China is a key power safeguarding free trade and WTO rules, and avoiding a trade war and damage to the world economy is also China’s responsibility.”

Won’t beg for peace

China will make no compromise on its legitimate interests, but there is still room for both sides to maneuver, Bai Ming, deputy director of the Beijing-based International Market Research Institute, told the Global Times on Tuesday.

Trump also said on his twitter account on Tuesday that “Trade talks going on with numerous countries that, for many years, have not treated the US fairly. In the end, all will be happy!”

China needs to figure out how to deal with Trump’s threats and his demands for constant compromises. If China shows tolerance to such behavior there will no doubt be new provocations in the future, Bai said.

“China will not beg for a détente. Trump’s trade memorandum is aimed at sharpening a tough image to his supporters, rather than a real threat of a trade war that could damage the world economy,” said Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation.

Even as China continues to negotiate with the US, China is preparing a list of retaliatory measures in case negotiations fail, said Mei, adding that an agreement will be reached only when the US understands that China’s countermeasures will hurt the US.

Asian stock markets closed higher on Tuesday as reports of behind-thescenes talks between the US and China rekindled hopes that a damaging trade war could be averted, Reuters reported.

The abrupt mood swing came amid reports that negotiations between Chinese and US officials were continuing and there remained a possibility that an all-out trade war could be averted.