China vows to protect interests, will respond to Trump’s tariff imposition
US President Donald Trump ready to slap tariffs on $50 billion worth of Chinese goods, the question now is how Beijing will respond.
China said on Thursday it would take “all necessary measures” to defend its interests, without mentioning anything specific. Expectations are growing that President Xi Jinping won’t hold back.
“China’s counter-measures will be extraordinary and unconventional,” said Gao Zhikai, a former Beijing-based diplomat and former vice-president of crude oil giant CNOOC Ltd. “The reported $50 billion of tariffs against China are weapons of mass destruction for trade. They will violate WTO rules and leave no way out for China.”
Xi also has domestic reasons to appear tough. He can’t show any weakness after lawmakers in Beicountry. jing this month made him “supreme leader for life”, said James McGregor, China chairman of the consultancy APCO Worldwide, which advises foreign companies.
Among the range of options available, a number of them can be implemented straight away. Others, however, would take more time.
China could quickly throw up non-tariff obstacles to trade, stepping up safety inspections and delaying paperwork essential for goods to make it into the country. It’s an under-the-radar approach China has often used to advance its geopolitical goals.
During a standoff over the Scarborough Shoal in the South China Sea in 2012, China told tourists to avoid unnecessary travel to the Philippines and increased quarantine and inspection of fruit shipped from the In 2010, China stopped giving Japan export licenses for rare earth metals needed for cars and electronics amid tensions over disputed East China Sea islands.
Another option is for China to impose special additional duties on locally made products exported to US firms like Apple Inc. and other consumer goods, and electronics giants would suffer if China imposes a duty on exported products.
While China could hit Trump with retaliatory tariffs, it has long said it wants to follow World Trade Organization rules. The WTO’s dispute settlement mechanism calls for the two sides to negotiate over a 60-day period, after which the case goes to a panel that can decide whether a retaliatory tariff is appropriate, according to Olga Boltenko, chairperson of the committee on commercial law and practice at the International Chamber of Commerce in Hong Kong.
BEIJING:With