Please ensure Javascript is enabled for purposes of website accessibility
China Threatens Retaliation for Trump's Planned Tariff Hike
gvw_ap_news
By Associated Press
Published 5 years ago on
August 2, 2019

Share

BEIJING — China on Friday threatened retaliation if U.S. President Donald Trump’s planned tariff hikes go ahead, while the renewed acrimony between the two biggest global economies sent stock markets tumbling.
China’s government accused Trump of violating his June agreement with President Xi Jinping to revive negotiations aimed at ending a costly fight over Beijing’s trade surplus and technology ambitions.
Trump rattled financial markets with Thursday’s surprise announcement of 10% tariffs on $300 billion of Chinese imports, effective Sept. 1. That would extend punitive duties to everything the United States buys from China.
If that goes ahead, “China will have to take necessary countermeasures to resolutely defend its core interests,” said a foreign ministry spokeswoman, Hua Chunying.
“We don’t want to fight, but we aren’t afraid to,” Hua said at a regular news briefing. She called on Washington to “abandon its illusions, correct mistakes, and return to consultations based on equality and mutual respect.”
Washington and Beijing are locked in a battle over complaints China steals or pressures companies to hand over technology. The Trump administration worries American industrial leadership might be threatened by Chinese plans for government-led creation of global competitors in robotics and other technologies. Europe and Japan echo U.S. complaints those plans violate Beijing’s market-opening commitments.

Beijing About to Run out of American Imports

Washington earlier imposed 25% tariffs on $250 billion in Chinese products. Beijing has retaliated by raising import duties on $110 billion of U.S. goods.

China imported U.S. goods worth about $160 billion last year. But regulators have extended retaliatory measures to include slowing down customs clearance for American companies and putting off issuing license in insurance and other fields.
Beijing is about to run out of American imports for retaliation due to their lopsided trade balance.
China imported U.S. goods worth about $160 billion last year. But regulators have extended retaliatory measures to include slowing down customs clearance for American companies and putting off issuing license in insurance and other fields.
Beijing also is threatening to release an “unreliable entities” blacklist of foreign companies that might face restrictions on doing business with China. Plans for that were announced after Washington imposed crippling restrictions in May on sales of U.S. technology to Chinese tech giant Huawei Technologies Ltd.
Trump’s announcement surprised investors after the White House said Beijing promised to buy more farm goods. It came as their latest trade talks ended in Shanghai with no sign of a deal. Officials said they would resume next month in Washington.
The announcement “is likely to put a comprehensive deal further out of reach,” said Fitch Solutions in a report.
Tokyo’s main stock market index fell 2.5% by midday and Hong Kong’s benchmark lost 2.3%. Markets in Shanghai, Sydney and Seoul also declined.

Yuan Fell to Its Lowest Level This Year Against the Dollar

Earlier on Wall Street, the benchmark Standard & Poor’s 500 fell for a fourth day, losing 0.9% to 2,953.56.
The Dow Jones Industrial Average declined 1% to 26,583.42. The Nasdaq composite ended 0.8% lower at 8,111.12.
Also Friday, China’s yuan fell to its lowest level this year against the dollar after Trump’s tariff threat fueled concerns about slowing economic growth, coming close to breaking the politically sensitive level of seven to the U.S. currency.
The yuan tumbled to 6.9520 to the dollar, its weakest since December, but recovered slightly by midday.
Trump’s threat “will likely put more depreciation pressure” on the currency, said Tao Wang of UBS in a report. She said Beijing is likely to “tightly manage” the exchange rate “to avoid any significant depreciation.”
The currency’s weakness is helping to fuel Washington’s trade complaints. The U.S. Treasury Department declined in May to label China a currency manipulator but said it was closely watching Beijing.

China’s Foreign Minister Criticized the Move

The level of seven yuan to the dollar has no economic significance, but could revive U.S. attention to the exchange rate.
Trump’s earlier tariffs were intended to minimize the impact on ordinary Americans by focusing on industrial goods. But the new tariffs will hit a vast range of consumer products from cellphones to silk scarves.

“Imposing tariffs is definitely not the right way to resolve trade frictions.” Wang Yi 
China’s foreign minister criticized the move.
“Imposing tariffs is definitely not the right way to resolve trade frictions,” Wang Yi told reporters in Bangkok, where he was attending a meeting of the Association of Southeast Asian Nations.
Trump has long said he was preparing to tax the $300 billion in additional Chinese tariffs. But he had suspended the threat after meeting Xi at a gathering of the Group of 20 major economies in Osaka, Japan.
The president accused Beijing of failing to follow through on stopping the sale of fentanyl to the United States or on purchasing large quantities of farm goods such as soybeans. Speaking to reporters Thursday at the White House, Trump complained Xi is “not moving fast enough.”
Talks broke down in May after the United States accused the Chinese of reneging on earlier commitments.

DON'T MISS

Fresno State Alum Is New Dean of Health and Human Services College

DON'T MISS

Who Is Rep. Matt Gaetz, the Florida Congressman Donald Trump Picked to Serve as AG?

DON'T MISS

The Key Races to Watch: Nov. 13 Update

DON'T MISS

Feds Agree to Raise San Luis Reservoir: More Water for Farmers, Communities, Wetlands

DON'T MISS

Wired Wednesday: What Impact Does Deportation Have on the Central Valley?

DON'T MISS

How Will Election Winners Bredefeld and Chavez Fit in as Supervisors?

DON'T MISS

California Senate Leader Calls Union ‘Morally Bankrupt’ for Opposing a Vulnerable Democrat

DON'T MISS

R&B Concerts, Comedy, & Worship Take Center Stage This Weekend

DON'T MISS

Speaker Mike Johnson Wins GOP Nomination to Remain in Job, Faces Full House Vote in New Year

DON'T MISS

ICE Immediately Moves to Bolster Surveillance of Illegal Immigrants After Trump Win

UP NEXT

Republican John Thune of South Dakota Is Elected the Next Senate Majority Leader

UP NEXT

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

UP NEXT

US Says It Will Not Limit Israel Arms Transfers After Some Improvements in Flow of Aid to Gaza

UP NEXT

Travel in the West Bank Is a Tale of Two Journeys

UP NEXT

Chris Wallace Is Leaving CNN, Eager to Explore New Media Landscape

UP NEXT

Aid Groups Say Israel Misses US Deadline to Boost Humanitarian Aid Entering Gaza

UP NEXT

US Regulators Investigating Whether Engines on 1.4 Million Hondas Might Fail

UP NEXT

Israeli Strikes Kill Dozens in Lebanon and Isolated Northern Gaza While Netanyahu and Trump Speak

UP NEXT

When to Catch the Last Supermoon of the Year

UP NEXT

Mattel Says It ‘Deeply’ Regrets Misprint on ‘Wicked’ Dolls Packaging That Links to Porn Site

Feds Agree to Raise San Luis Reservoir: More Water for Farmers, Communities, Wetlands

4 hours ago

Wired Wednesday: What Impact Does Deportation Have on the Central Valley?

5 hours ago

How Will Election Winners Bredefeld and Chavez Fit in as Supervisors?

5 hours ago

California Senate Leader Calls Union ‘Morally Bankrupt’ for Opposing a Vulnerable Democrat

5 hours ago

R&B Concerts, Comedy, & Worship Take Center Stage This Weekend

6 hours ago

Speaker Mike Johnson Wins GOP Nomination to Remain in Job, Faces Full House Vote in New Year

6 hours ago

ICE Immediately Moves to Bolster Surveillance of Illegal Immigrants After Trump Win

6 hours ago

You Can Win a Lexus in This Fresno Telethon Drawing. Get Tickets Now.

7 hours ago

Trump Says He Will Nominate Rep. Matt Gaetz of Florida to Be Attorney General

7 hours ago

Bluesky Has Added 1 Million Users Since the US Election as People Seek Alternatives to X

7 hours ago

Fresno State Alum Is New Dean of Health and Human Services College

From student to scholar to professor and department chair, Dr. Kara Zografos’ history with Fresno State dates back nearly 20 years. Now she ...

4 hours ago

4 hours ago

Fresno State Alum Is New Dean of Health and Human Services College

Rep. Matt Gaetz, R-Fla., speaks at the Republican Party of Florida Freedom Summit, Nov. 4, 2023, in Kissimmee, Fla. (AP File)
4 hours ago

Who Is Rep. Matt Gaetz, the Florida Congressman Donald Trump Picked to Serve as AG?

4 hours ago

The Key Races to Watch: Nov. 13 Update

4 hours ago

Feds Agree to Raise San Luis Reservoir: More Water for Farmers, Communities, Wetlands

Wired Wednesday Cover, 11/13/24, KMPH Screengrab
5 hours ago

Wired Wednesday: What Impact Does Deportation Have on the Central Valley?

5 hours ago

How Will Election Winners Bredefeld and Chavez Fit in as Supervisors?

5 hours ago

California Senate Leader Calls Union ‘Morally Bankrupt’ for Opposing a Vulnerable Democrat

6 hours ago

R&B Concerts, Comedy, & Worship Take Center Stage This Weekend

Search

Send this to a friend