Pompeo confident U.S. will win China trade war
- Author: Rogelio Becker Sep 24, 2018,
Sep 24, 2018, 18:26
The Chinese government said it would apply tariffs on 5,200 US imports of various products worth about $60 billion, also effective on Monday.
China accused the United States of engaging in "trade bullyism" and intimidating other countries to submit to its will through measures such as tariffs, the official Xinhua news agency said Monday, hours after the two sides imposed fresh duties.
China published a white paper on Monday that attacked the "protectionist practices" and "trade bullyism practices of the USA administration", according to state-run Chinese news service Xinhua.
China cancelled talks that were scheduled for this week, and is digging in by prepping stimulus measures to cushion the economy.
"The trade war is now a reality", Fitch chief economist Brian Coulton said in the release.
"As the largest importer of United States soybeans, China is a vital and robust market we can not afford to lose, " the supplement quotes Davie Stephens, vice president of the American Soybean Association and a Kentucky soybean grower, saying in a statement.
Despite the ballooning trade deficit, there are bigger issues at stake for the USA, such as containing China's rise as it moves towards economic superpower status through its "Made in China 2025" policy and the $1 trillion Belt and Road Initiative.
The meeting was meant to discuss how to de-escalate the ongoing trade war between the United States and China, which began in July.
The latest batch of Chinese imports will face 10 percent tariffs through the end of the year, and then the rate will jump to 25 percent.
Analysts believe that China may be waiting for USA mid-term elections early next month for any hints of changes in Washington's policy stance.
Chinese products hit with fresh USA duties include everything from vacuum cleaners to internet-enabled devices, while U.S. goods targeted by China include liquefied natural gas and certain types of aircraft.
China on Saturday called off planned trade talks with US officials with a move by the US State Department to sanction China's defence agency and its director on Thursday contributing to the decision, according to people familiar with the situation.
Mr Trump has repeatedly threatened higher tariffs on the remaining Chinese imports should Beijing retaliate against Monday's round.
China has pulled out of trade talks with the USA in response and attacked the Trump administration's "trade bullyism" in a white paper.
Beijing's retaliatory tariffs on $60 billion in American goods were set to go into effect soon after the USA action, the finance ministry announced last week. Business groups say American companies also report Chinese regulators are starting to disrupt their operations through slower customs clearance and more environmental and other inspections.