China vows to retaliate if United States imposes new levies

Andrew Cummings
August 23, 2019

Gao expressed the hope that the USA side would stop its erroneous practice of imposing tariffs, meet halfway with China, and find a solution to the problem based on equality and mutual respect.

Trump has slapped steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted for new duties in two more rounds, September 1 and December 15.

On Wednesday, Chinese Foreign Ministry spokesman Geng Shuang said he hopes that the USA and China can "get along" and resume "mutually beneficial" trade.

China said on Thursday it hopes the United States will stop its wrong tariff action, adding that any new tariffs would lead to escalation.

US President Donald Trump on Wednesday said he was "the chosen one" to address trade imbalances with China, even as congressional researchers warned that his tariffs would reduce US economic output by 0.3 per cent in 2020.

In the China news on trade deal pitch, the term "halfway" is strategically used implying it is not going to accept all the demands put forth by the United States. But they have to make a deal that's fair to us.

USA and Chinese negotiators are due to meet in September in Washington.

"I'm taking on China on trade", the president said. Last month's meeting in Shanghai brought no results, and the date of next round of face-to-face talks has not been announced.

On Tuesday, Trump did not try to deny the chances of a recession as a fall out of the trade war and told reporters that "somebody had to take China on".

The US has threatened to impose unilateral tariffs on French wines and cheese products in response to the 3% digital services tax to be levied by France on annual revenues generated by US tech giants, such as Google, Amazon, Facebook, and Microsoft.

Negotiators talked by phone August 13 and agreed to talk again within two weeks, Gao said. Beijing retaliated with its own penalties on US$110 billion of goods from the United States.

Stating this, China's foreign ministry spokesman, Geng Shuang expressed the hope that Washington can "get along us" and restore "mutually beneficial" trade.

Trump earlier announced plans to impose 10 per cent duties on US$300 billion of Chinese goods, extending penalties to nearly everything China sells the United States.

He said that the US move would pose certain challenges to China's exports and economy, but the impact is fully controllable in general.

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