China urges U.S. to show sincerity, correct behavior in trade actions

Hannah Rogers
September 23, 2018

China on Wednesday called on the United States to show "respect" in their trade dispute and rejected President Donald Trump's claims that it was meddling in the U.S. midterm elections by taking aim at his political base. One top Chinese official has warned darkly that the country could cut off exports of key components to US manufacturers if tensions worsen.

On Monday, the Trump administration expanded tariffs on another $200 billion worth of Chinese imported goods. However, it warns that the tariffs may hurt US manufacturers that get supplies from China.

A prolonged trade war between the United States, the world's largest economy, and China, the second-largest, would ripple through the rest of the globe, potentially affecting economies from Buenos Aires to Istanbul. We have a lot more to come back with", Trump told a packed rally in Missouri for Republican Senate candidate Josh Hawley on Friday (Sept 21)."We are cracking down on the unfair trade practices of China... The economies of developing countries that export farm goods and other commodities to China could weaken.

"We're effectively being penalized for bringing back that product manufacturing from the Philippines to the USA", said Chris Cowger, the Chicago-based company's chief executive.

"We have been ripped off by China".

"This will not result in bringing more business back to American soil: just six percent of our member companies say this current US-China trade dispute would make them consider relocating operations back home", William Zarit, the chamber's chairman, said in a. The National Retail Federation in the USA warned that duties will lead to higher prices and even product shortages.

Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, said the latest U.S. tariff actions will have a negative effect on the Chinese economy, reducing its GDP growth by about 0.7 percentage point. But talk of a trade war is alarming to many USA business leaders, who largely support existing trade deals, and the securities markets, which fear lower profits and slower economic growth.

Beijing has tried to appear restrained by doing no more than matching Trump's penalties.

Concerns about the trade dispute is also spurring last-minute shipments across the Pacific for Ocean Network Express, a combination of the container operations of Japan's three biggest shipping firms, it said.

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Figures from the U.S. Department of Commerce show the U.S. exported 622,500 tires to China in 2017, valued at about $55 million.

"They certainly can not negotiate at what they consider to be gunpoint", Hirson said of China's dilemma.

But, there is much more to the picture than that, as $50 billion worth of tariffed imports from China were put in place earlier this year. While the US has yet to move forward with the additional $267 billion in tariffs does not mean it won't, stay tuned.

Oxford Economics said in a note that China's economic growth in 2019 could fall well below 6 percent, and said prospects for near-term easing in tensions were low.

Many emerging economies depend on shipping commodities to China.

"They are also meant to protect global free trade order, and have nothing to do with domestic politics in the United States".

USA officials say the World Trade Organization, the global trade regulator, is antiquated and unable to deal with complaints about Chinese-style industrial policies.

The problem, as always, is whether Mr. Trump's goal is to accumulate leverage for use in a near-term negotiation or to discourage trade with China permanently as a matter of policy.

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