TRADE WAR WILL HARM EVERYONE: CHINA OFFICIAL
Chinese Vice Premier Han Zeng tells global business forum to cooperate, make economic globalization ‘beneficial to all’
A top Chinese official warned Sunday that a “trade war” would harm all sides but gave no indication of Beijing’s possible next move in a spiraling dispute with President Donald Trump over steel and technology.
Speaking to global business leaders at a development forum, Vice Premier Han Zheng appealed for cooperation to make economic globalization “beneficial for all.”
“A trade war serves the interests of none,” Han said at the China Development Forum. “It will only lead to serious consequences and negative impact.”
Han didn’t mention Trump by name or refer directly to the dispute with Washington, but the country’s newly appointed economy czar warned Saturday that Beijing will defend its interests. The government issued a $3 billion list on Friday of US goods including pork and stainless steel pipes it said might be hit by higher tariffs.
The Commerce Ministry said those charges were linked to Trump’s approval earlier of higher tariffs on steel and aluminum imports. But a bigger battle is brewing over Trump’s approval Thursday of a possible tariff hike on $30 billion of Chinese goods in response to what Washington says is Beijing’s improper acquisition of foreign technology.
Global financial markets have sunk on fears Chinese retaliation might prompt other governments to raise import barriers, depressing global trade.
Han appealed to other governments to “cooperate with each other like passengers in the same boat” and “make economic globalization more open, inclusive, balanced and beneficial for all.”
However, he also emphasized that China’s income per person still is low, suggesting Beijing is unlikely to offer significant concessions to Washington.
Han repeated promises that China’s planned market-opening would create new opportunities for foreign companies. Business groups have welcomed reform pledges but complain Beijing is moving too slowly, making it unclear whether additional promises will mollify Washington, the European Union and other trading partners.
In a phone call Saturday with US Treasury Secretary Steven Mnuchin, Vice Premier Liu He said Beijing is “ready and capable of defending its national interest and hopes both sides will remain rational,” according to China’s official Xinhua News Agency.
In a speech to the economic forum, Apple CEO Tim Cook acknowledged tensions in Western societies that fuel demands for import controls and said companies must take action to spread the benefits of globalization more widely.