If US persists in playing hardball, Beijing will too

In a move that intensifies Washington’s trade offensive against China, the US Trade Representative’s Office said on Tuesday it will go ahead with the previously announced 25 percent tariffs on Chinese goods worth $16 billion. Coming into effect on Aug 23, this will complete the first round of tariffs announced by the Donald Trump administration on $50 billion worth of Chinese imports. Given that the US administration has also threatened to impose 25 percent tariffs on another $200 billion worth of Chinese goods — and perhaps another $300 billion of goods until tariffs are imposed on virtually everything imported from China — the two countries’ trade conflict, which is merely push and shove at the moment, is likely to escalate into more than just a scuffle if the US administration cannot marshal its mobster mentality.

China continues to do its utmost to avoid a trade war, but in the face of the US’ every greater demand for protection money, China has no choice but to fight back.

As it pledged to do, Beijing has responded to the latest manifestation of Washington’s ill-intentions with a reciprocal action, announcing on Wednesday an additional 25 percent tariff on US imports of an identical amount to come into effect on the same day.

The Trump administration may believe that it has the upper hand in what US President Donald Trump recently described as a “little bit of a fight with China”, but it should know that if it continues to make good on its threats, Beijing will carry on retaliating in kind.

Those in Washington may believe they are acting honorably in seeking the humiliation of a rival, but instead they only reveal their willingness to forfeit the country’s reputation and image to satisfy their own intemperate cravings and justify their obsolete mindset by putting themselves above the international trade rules and dispute settlement system.

They may truly believe it will be easy to bring China to its knees but, no matter how long it takes, they will end up eating crow.

To solve the trade dispute, Beijing has remained rational and reasonable and long called for negotiations. It is time the US trade hawks stepped down from their crusade, as it merely highlights the Trump administration’s paucity of policy.

While the US administration blames what it decries as abusive trade policies, the deficit simply reflects the reality that the US spends more than it saves.

The pain being felt by US farmers and industries is a tax on the Trump administration’s error of judgment. And like any tax, the more it goes up, the louder the complaints will be from those at home who are being forced to pay it.