China has announced to impose a $3bn retaliatory tariffs after the U.S. President Trump announced to impose tariffs on as much as $60bn Chinese products.
The Chinese ambassador to the U.S. warned the U.S. that they are not “afraid of” a trade war Donald Trump had been warning about.
“We do not want a trade war with the United States or with anybody else, but we are not afraid of it. If somebody tries to impose a trade war upon us, we will fight.
“We will do whatever we can to defend the legitimate interests. We will also do whatever we can to safeguard the open global trading system,” said Cui in a video posted on the embassy’s Facebook account.
The Chinese Ministry of Commerce announced on Friday that it was considering raising tariffs on 128 U.S. products imported in China.
The Chinese Ministry said in a statement, the tariffs would “balance out the losses sustained by China through the United States’ increased tariffs on steel and aluminum imports.
“China urges the United States to resolve China’s concerns as soon as possible, resolve bilateral differences through dialogue and consultation, and avoid damage to the broader array of Chinese-U.S. cooperation,” Ministry of Commerce’s statement added.
The Chinese embassy in the U.S. said that “if a trade war were initiated by the US, China would fight to the end.”
A trade war against the U.S., however, could be challenging for the Chinese President Xi Jinping’s vision to rapid growth.
Roberto Azevedo, the chief of World Trade Organization (WTO), urged the countries to settle disputes through WTO framework.
“Actions taken outside these collective processes greatly increase the risk of escalation in a confrontation that will have no winners, and which could quickly lead to a less stable trading system.
“Disrupting trade flows will jeopardize the global economy at a time when economic recovery, though fragile, has been increasingly evident around the world,” Mr. Azevedo added.
The U.S. President Donald Trump announced on Thursday to impose tariffs on $60bn worth Chinese products sparking the fears of a trade war.
The U.S. President announced to slap trade sanctions on China which include restrictions on Chinese investments.
Marking the end of a seven-month-long investigation about the Chinese tactics in challenging the U.S. in technology and hacking commercial secrets, President Trump announced the punitive measures.
The U.S. accuses China of demanding the U.S. companies of handing over business secrets in exchange for access to the Chinese market.
President Trump said the U.S. action to impose tariffs on Chinese products is a part of efforts to ensure fairness in business between the U.S. and China.
President Trump reminded of China imposing 25% tariff on U.S. cars while the U.S. imposes only 2.5% duty on Chinese cars.
U.S. President said, “They charge us, we charge the same thing.” He said it would be the ‘first of many’ trade actions.
“We have a tremendous intellectual property theft situation going on,” Trump told reporters.
The Chinese ambassador the U.S., Mr. Cui, warning against trade war said the “end of it will be hurting everybody. It will certainly affect the daily lives of the American middle-class people. It will affect the balance sheet of American companies.
“It will affect the indexes of the financial market. It will undermine people’s confidence in the long-term economic prospects. I don’t think anybody can gain anything from it,” the ambassador Tiankai added.