China won't accept USA trade 'blackmail': state media

Lloyd Doyle
August 6, 2018

US President Donald Trump has said he is determined to reduce the large US trade deficit with China.

The objective of the talks was to "prepare for more formal negotiations" but the progress had been slowed down due to the mistrust on both the sides, the Post quoted official sources as saying.

China on Friday announced retaliatory tariffs on $60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft and warned of further measures, signalling that it won't back down in a protracted trade war with Washington.

Trump told an audience of diehard supporters on Saturday that playing hardball on trade is "my thing".

"Because of tariffs we will be able to start paying down large amounts of the US$21 trillion in debt that has been accumulated, much by the Obama administration, while at the same time reducing taxes for our people", he said, referring to his predecessor Barack Obama.

Earlier this week, the White House said it was considering boosting tariffs on $200 billion worth of Chinese goods, raising those tariffs to 25 percent from 10 percent.

August 3: China announced plans to slap a 25 percent tariff on $60 billion worth of U.S goods. "Even if the trade war escalates, China would rather lift the 25 percent tariffs to 50 percent, instead of imposing any tariffs on integrated circuits or big airplanes", according to Larry Hu, head of China economics at Macquarie Securities Hong Kong.

The US and China implemented tariffs on $34 billion worth of each others' goods in July.

The U.S. hit back with tariffs on 1,300 Chinese goods worth $50 billion. The president's chief economic adviser also revealed there would be a "number of announcements" over the next 30 days covering trade deals with the EU.

"Governing a country is not like doing business", the paper said, adding that Trump's actions imperilled the national credibility of the United States. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury.

"The US side has repeatedly escalated the situation against the interests of both enterprises and consumers", the Chinese Commerce Ministry said in its statement.

While U.S. crude exports to China appear to have held up in August, with about 342,000 bpd expected to arrive, they seem set for a slump in September. "We haven't heard from them". But multiple reports indicate that prior to the call, there has been nearly no dialogue for the past month.

Kudlow, a devout free trade supporter who criticized Trump's approach before joining the White House this year, has tried to steer the president toward an embrace of an idea that every country remove all of their tariffs in a way that would still achieve conservative political goals.

Mills said all signs point to the trade fight to sticking around for the foreseeable future.

It is indeed due to the lack of meaningful consultation between China and the US that Beijing has made a decision to elevate the stakes in a manner that is directly reflective of Donald Trump's unwillingness to negotiate a new era in Sino-US trading relations on a win-win model.

Other reports by Iphone Fresh

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