China ready for ‘protracted’ trade war with US
Beijing has responded to US President Donald Trump’s claims that he has the upper hand in the trade war with China by saying it is ready to endure the economic effects.
China is prepared for a “protracted war” and does not fear sacrificing short-term economic interests, an editorial in the nationalist Global Times said on Sunday evening.
“Considering the unreasonable US demands, a trade war is an act that aims to crush China’s economic sovereignty, trying to force China to be a US economic vassal,” it read.
Beijing on Friday released a new tariff list to retaliate against the US threat to impose new duties on US$200 billion (Dh734.65bn) of Chinese imports at a time of slowing in China’s economy, declines in the currency and a cautious stock market.
Mr Trump told supporters on Saturday that playing hardball on trade is “my thing”.
“We have really rebuilt China and it’s time that we rebuild our own country now,” he said at a rally outside Columbus, Ohio.
Mr Trump said that China’s market declines weaken the country’s bargaining power in the trade war.
He continued his focus on tariffs on Sunday morning, tweeting that the duties are working “big time” and that imported goods should be taxed or made in the US.
Mr Trump said that duties would enable the US to reduce “large amounts of the $21 trillion in debt that has been accumulated” and to reduce taxes for Americans.
“Every country on Earth wants to take wealth out of the US, always to our detriment,” he tweeted. “I say as they come, tax them.”
China’s Finance Ministry said duties from 5 to 25 per cent would be levied on 5,207 kinds of imports from America if the US introduced its taxes on another $200bn of Chinese goods.
Mr Trump last week ordered officials to consider imposing a 25 per cent tax on the Chinese imports, up from an initial 10 per cent.
The move was intended to bring back China to the negotiating table for talks over US demands for structural changes to the Chinese economy and a cut in the trade deficit, but Beijing’s response suggests the tactic has not worked.
“In the face of the bullying of the Donald Trump administration, Beijing must remain sober-minded and never let emotion override reason when deciding how to respond,” said an editorial in the China Daily.
“Given China’s huge market, its systemic advantage of being able to concentrate resources on big projects, its people’s tenacity in enduring hardships and its steadiness in implementing reform and opening up policies, the country can survive a trade war.”