China promises to hit back if Trump imposes new tariffs
China on Monday promised retaliation if US President Donald Trump escalates their tariff battle, raising the risk Beijing might target operations of American companies as it runs out of imports for penalties. The threat came after Trump said Friday he was considering extending penalties to an additional $267 billion of Chinese products in their battle over Beijing's technology policy. Here are more details.
Will definitely take countermeasures to safeguard our rights: Chinese spokesman
The new tariffs would be on top of $50 billion of goods already hit by 25% duties and another $200 billion on which Washington is poised to raise tariffs. "If the United States insists on imposing another round of tariffs on Chinese products, China will definitely take countermeasures to safeguard its legitimate rights and interests," Foreign Ministry spokesman Geng Shuang said.
China would impose unspecified comprehensive measures if necessary: Spokesman
Geng gave no details, but the government said in June it would impose unspecified "comprehensive measures" if necessary. That left American companies on edge about whether Beijing might use its control over the heavily regulated economy to disrupt their operations by withholding licenses, launching tax.
China matched US's first round of tariff hikes
China matched Washington's first round of tariff hikes on $50 billion of its goods, but their lopsided trade balance means Beijing is running out of imports for retaliation. The US imported $3 of Chinese goods last year for every $1 of American goods bought by China. Chinese leaders agreed in May to narrow that trade-gap by purchasing more American soybeans and other products.
China rejects Trump's demand to roll-back 'Made in China 2025'
China rejects Trump's demand to roll back official industry plans such as "Made in China 2025" which call for the state-led creation of global champions in robotics, artificial intelligence. Washington, Europe, and other trading partners argue those plans violate Beijing's market-opening pledges. American officials worry they might erode US industrial dominance. But Communist leaders see them as China's path to prosperity and global influence.
China's exports to US have been unexpectedly resilient
China's exports to the United States have been unexpectedly resilient. That might add to Washington's frustration and prompt more import controls. Exports to the United States in August rose 13.4% to $44.4 billion, ticking up from July's 13.3% growth. Chinese imports of US goods rose 11.1% to $13.3 billion. China's trade surplus with the United States widened to a record $31 billion.
Chinese regulators have so far targeted farm goods from America
Beijing matched Washington's first round of tariffs on $50 billion of goods. But after Trump's threat to target another $200 billion of goods in the second round of increases, China issued a list of only $60 billion of American products for possible retaliation. Chinese regulators have so far targeted farm goods and other exports from American states that supported Trump in the 2016 election.