On Friday, China warned that it would fight back with fresh new trade measures against the U.S., if the White House continues on its protectionism course. This announcement came hours after U.S. President Donald Trump said he could add another $100 billion worth of tariffs on goods from China.
Trump said that following the unfair retaliation by China against earlier trade actions taken by the U.S., he would order officials in the U.S. to identify more tariffs, which escalated more the confrontation, with possibly damaging consequences for the two largest economies in the world.
China on Wednesday unveiled its list of goods from the U.S. that totaled 106, from whiskey to soybeans to aircraft and beef targeted for tariffs, which was a rapid retaliatory move just hours after the White House proposed duties for 1,300 Chinese technology, transport, medical and industrial products.
Washington has called for another $50 billion in duties after saying its probe determined that the government policies in China are designed to transfer intellectual property from the U.S. to companies in China and to allow them to take leadership in important high-tech industries.
In response to Trump’s most recent comments, the commerce minister of China reiterated that his country was not concerned about a trade war, though it was not seeking one, and also accused the U.S. of provoking this current conflict.
Earlier on Friday, the state media in China slammed the threat by Trump as ridiculous.
While the claims by Beijing that Washington was the aggressor and was adding to global protectionism, trading partners of China have been complaining for several years that the country abuses rules set by the World Trade Organization and propagates policies that are unfair at home that end up blocking out foreign companies from some sectors.
China repeatedly has vowed to open up specific sectors like financial services.
Next week, President Xi Jinping is expected to release new messages on the country’s reform.
While China projected an image of restraint and multilateralism amidst the growing trade disputes with the U.S., Beijing was swift in responding to the actions and rhetoric of Washington.
Thus far, information tech products in the U.S. from mobile handsets to personal computers largely have escaped Beijing’s wrath, as well have telecoms equipment and large aircraft than the Boeing 737.
Amongst the most affected would be the technology sectors of the U.S. and in particular chipmakers.