News ID: 218119
Published: 0242 GMT July 11, 2018

China vows retaliation for $200 billion US tariff threat

China vows retaliation for $200 billion US tariff threat
AP

China accused the United States of bullying and warned it would hit back after the Trump administration raised the stakes in their trade dispute, threatening 10 percent tariffs on $200 billion of Chinese goods.

China’s Commerce Ministry said on Wednesday it was “shocked” and would complain to the World Trade Organization, but did not immediately say how it would retaliate. In a statement, it called the US actions “completely unacceptable”, Reuters reported.

The Foreign Ministry described Washington’s threats as “typical bullying” and said China needed to counter-attack to protect its interests.

“This is a fight between unilateralism and multilateralism, protectionism and free trade, might and rules,” Foreign Ministry spokeswoman Hua Chunying told a regular briefing on Wednesday.

Beijing has said it would hit back against Washington’s escalating tariff measures, including through “qualitative measures,” a threat that US businesses in China fear could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.

China could also limit visits to the United States by Chinese tourists, a business state media said is worth $115 billion, or shed some of its US Treasury holdings, Iris Pang, Greater China economist at ING in Hong Kong, wrote in a note.

The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to such US measures.

On Tuesday, US officials issued a list of thousands of Chinese imports the Trump administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum, prompting criticism from some US industry groups.

It also includes consumer goods ranging from car tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and beauty products.

Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of US exports to China. Each side is planning tariffs on a further $16 billion in goods that would bring the totals to $50 billion.

 

   
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