China will respond if US enacts new tariff

State- run Global Times says China looking forward to counter- attack US ■

Beijing, Sept. 17: China will not be content to only play defense in an escalating trade war with the United States, a widely read Chinese tabloid warned, as US President Donald Trump was expected to announce new tariffs on $ 200 billion in Chinese goods as early as Monday.

The US and China have already levied duties on $ 50 billion worth of each other’s goods in an intensifying row that has jolted global financial markets in the past few months.

Last week, the US Treasury Department invited senior Chinese officials, including Vice Premier Liu He, to more talks on the tariff dispute, though scepticism remained high among trade observers on both sides over the prospects of a breakthrough.

China’s foreign ministry reiterated that the escalation of the trade conflict was not in anyone’s interest. “We have always maintained that the only correct means to resolve the trade dispute is through dialogue and consultation on an equal basis with mutual trust and respect,” ministry spokesman Geng Shuang told a regular news briefing.

A senior administration official told Reuters over the weekend that Trump was likely to announce the new tariffs as early as Monday.

In early morning tweets, Trump said imposing tariffs strengthened the US’ bargaining position and that so far any cost increases on goods had been “almost unnoticeable”.

“If countries will not make fair deals with us, they will be ‘ Tariffed!’” Trump wrote.

The Global Times, which is published by the ruling Communist Party’s People’s Daily, wrote in an editorial: “It is nothing new for the US to try to escalate tensions so as to exploit more gains at the negotiating table.”

“We are looking forward to a more beautiful counterattack and will keep increasing the pain felt by the US,” the Chinese- language column said.

Besides retaliating with tariffs, China could also restrict export of goods, raw materials and components core to US manufacturing supply chains, former finance minister Lou Jiwei told a Beijing forum on Sunday, according to an attendee.

Lou is chairman of the National Council for Social Security Fund.

The person who attended the event and is familiar with the White House’s thinking said such a move would likely attract sharp retaliation from Washington, which has studied its own limits on exporting key technologies to China.

“Lou Jiwei’s approach would feed the most hawkish sentiments in the US government,” the person said, declining to be identified given the sensitivity of the matter.

China is a key supplier of minor metals and rare earths used in consumer electronics and other goods.