Seeking shelter amid a US-China trade war

Seeking shelter amid a US-China trade war

Seeking shelter amid a US-China trade war

According to Xi, Chinese authorities will also take a number of steps to facilitate access of foreign investors to the market of the country, particularly in such spheres as service sector, banking sector, insurance, shipbuilding and aircraft industry among others.

Beijing did not want to fight a trade war, but was not afraid of one, Vice Commerce Minister Qian Keming said at the Boao Forum for Asia in the southern province of Hainan. Asian markets mostly rose but stayed within a narrow range in subdued trading Tuesday as global investors continued to weigh their fears about a possible trade war between the US and China.

Significantly, Xi, about two-thirds of the way into his address, turned to address concerns voiced by U.S. President Donald Trump-albeit indirectly, without mentioning either the United States or Trump by name.

"As I understand it, there is no plan whatsoever for the two sides to talk", said Ruan Zongze, a former Chinese diplomat now with the China Institute of International Studies, a think tank affiliated with the Foreign Ministry. For one thing, it seems to be lost on Trump that while, yes, we have a trade deficit with China, Americans actually get something out of that, i.e. cheap goods that, as NY " s Jonah Shepp points out, "have raised our standard of living even as our incomes have stagnated".

China is poised to slap tariffs on $12 billion of U.S. soybean exports, representing more than half of total U.S. exports of the crop.

Hardest hit was the hog market, which descended to a 16-month low on Wednesday morning after the news broke.

But Chinese officials have promised numerous measures in the past with little action - Washington says it has grown exhausted of China's unfulfilled pledges, while the EU Chamber of Commerce in China summed up the exasperation a year ago as "promise fatigue". On Thursday, Trump told the USA trade representative to look for $100 billion more.

Last week, the Trump administration proposed 25 percent tariffs on $50 billion worth of roughly 1,300 Chinese imports. The Chinese government has much more control over its economy than the US, which would allow it to protect the public from factory closings or job cuts by forcing banks to support the industries hit by American tariffs.

The appropriate response from China would be to change its behaviour, said a White House official who spoke on condition of anonymity, adding the administration will use all available tools to protect American workers, farmers and ranchers. In announcing 25 percent tariffs on, among other things, soybeans and automobiles, Chinese leaders were hitting the president where they knew it would hurt, as the biggest soybean producers include Iowa, Ohio, Missouri, and Indiana.

China's global surpluses are now far below the USA negotiating targets of a few years ago, China has spent about $1 trillion propping up its currency, and intellectual-property protections are far better enforced. "The WTO is unfair to U.S".

Trump shot back, stating that he would be willing to consider an additional $100 billion worth of tariffs on Chinese goods.

USA crude rose 2.82 percent to $65.21 per barrel and Brent was last at $70.68, up 2.96 percent on the day.

Mnuchin noted that the USA tariffs on $50 billion of Chinese goods represent about 10 percent of imports from that country, while China's retaliation amounts to 38 percent of U.S. exports.

Private sector analysts saw Xi's speech as an overture to help end the biggest trade dispute since World War II.

Xi repeated pledges to open China's finance industries to foreign investors but gave no additional details.

Media captionHow hogs and Harleys became weapons in a looming trade war.

The US hasn't said when the duties will take effect.

US -made goods that appear to face added tariffs in China would include Tesla electric cars, Ford's Lincoln auto models, Gulfstream jets made by General Dynamics and Brown-Forman Corp's Jack Daniel's whiskey.

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