US tariffs ‘blackmail’: official

China vows comprehensive measures against latest threat

China on Tuesday launched a swift and sharp response to the latest trade provocations from the US, which threatened to slap tariffs on almost all Chinese exports to the US, calling the US move “blackmail” and vowing to respond with strength to protect its own and the world’s interests.

In a harshly-worded statement on Tuesday, China’s Ministry of Commerce (MOFCOM) said that it would have to take “comprehensive measures” to respond if the US pushes ahead with a plan to impose tariffs on $200 billion worth of Chinese goods.

“If the US loses its rationality and issues a list, China would have to take comprehensive measures, both quantitative and qualitative, to respond with powerful strength,” the statement reads. That followed a statement from US President Donald Trump on Monday that threat-

ened a 10 percent tariff on $200 billion worth of Chinese goods and an additional list worth $200 billion if China fights back.

Largely repeating the MOFCOM statement, Geng Shuang, a spokesperson for the Chinese Ministry of Foreign Affairs, on Tuesday also urged the US to return to rationality and stop words and deeds that harm others and do no benefit to itself.

With a previously announced list of Chinese goods worth $50 billion, the US has now threatened to impose tariffs on $450 billion worth of Chinese goods, which is close to the $505 billion in Chinese exports to the US in 2017.

“Such extreme pressure and blackmail have deviated from the consensus reached by the two sides in many rounds of consultations, and have also disappointed the international community,” the MOFCOM said.

Chinese and US officials had previously agreed, following several rounds of negotiations, to avoid a trade war, but that all changed after the US slapped tariffs on $50 billion worth of Chinese goods on Friday, prompting similar actions from China.

By threatening tariffs on $450 billion worth of Chinese goods, Trump has seriously miscalculated China’s willingness to defend its interests and might have blocked any chance for further consultations, said Dong Yan, a research fellow at the Chinese Academy of Social Sciences’ Institute of World Economics and Politics.

“We should now throw out any impression we have of the US and prepare to counter it with all we’ve got,” Dong told the Global Times, adding that the MOFCOM statement on Tuesday made that clear.

Many cards to play

While the statement did not contain specific countermeasures, it shows China still has many cards to play, said Liang Ming, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, which is affiliated to the MOFCOM.

“By mentioning quantitative and qualitative measures, China wants to make it clear to the US that it is aware of US intentions and that China still has many possible countermeasures,” Liang told the Global Times, adding that Trump is “gambling” that China would give in because it could not match the new list.

Indeed, China would not be able match the new list of $200 billion because China only imported about $153 billion in US goods in 2017. However, there are many non-tariff measures that China could take against the US on the same scale, Liang noted, declining to further elaborate.

In the statement, the MOFCOM also stressed that China would not give up its long-term economic development plans to US intimidation and blackmail, said Jiang Yong, a research fellow at the China Institutes of Contemporary International Relations in Beijing.

“While Trump’s tactic of imposing tariffs has received some criticism in the US, the US public and politicians agree on the need to constrain China strategically to protect its dominance in the world,” Jiang told the Global Times. “But for them to think that China would give up its core interests is laughable.”

The US has frequently cited China’s industrial policies, most notably the “Made in China 2025” program, as unfair trade practices and demanded that China adjust.

“The ‘Made in China 2025’ plan is linked to the Chinese people’s destiny and is a key step in China’s great rejuvenation. They have to understand that China would never use its core interests and destiny as bargaining chips in negotiations,” Jiang told the Global Times on Tuesday.

While the MOFCOM statement did not mention the plan, it said that regardless of changes in the external environment, China would continue to push for high-quality economic growth and building a modern economic system.