Friday, 22 February, 2019

U.S. 'firing at itself' with trade measures: China

Stocks at Risk Wal Mart U.S. 'firing at itself' with trade measures: China
Nellie Chapman | 05 July, 2018, 08:38

China is poised to fire the opening salvo in an escalating trade dispute with the USA by bringing in 25% tariffs on $34bn of U.S. goods a day earlier than Washington. A Reuters analysis found just 1% of the 1,102 categories of products imported from China to the US are consumer goods.

Concerns about the outbreak of a global trade war have, among other factors, prevented a sustained recovery in global stock markets since a violent sell-off knocked them off records highs in February.

But he added that at a high level China-EU economic dialogue in Beijing last week both sides had agreed to oppose unilateralism and trade and investment protectionism.

Just days ago the president enacted tariffs on steel and aluminum imports, which he said could lead to duties on foreign-made auto parts.

Chinese and U.S. flags are set up for a meeting during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing, China April 27, 2018.

U.S. President Donald Trump also threatened tariffs on as much as $400 billion worth of Chinese goods if Beijing retaliates against the U.S. tariffs due to go into force on Friday.

However, China's offer at the upcoming summit to open up reflects Beijing's concern that it is set to face tighter European Union controls, and regulators are also blocking Chinese takeover attempts in the United States.

A Chinese court temporarily banned Micron Technology (MU.O) from selling chips in China, the world's biggest memory chip market, hitting shares in USA stock overnight and Asian semiconductor stocks on Wednesday.

The warning comes as trade tensions mount between the two countries.

China's second-quarter economic growth is expected to have slowed slightly from the previous quarter, a Reuters poll showed, as policymakers seek to mitigate the impact from a de-risking drive and the trade dispute with the United States.

According to translated quotes published by Travel and Leisure magazine, the advisory warned that "shooting, robbery, and theft are frequent" in the United States.

"China and European countries are natural partners", it said.

"Trump has split the West, and China is seeking to capitalize on that".

"The USD 34 billion US tariffs figure has been mostly factored by the markets and focus is now on what the United States says on the remaining $16 billion", Ichikawa said.

Chinese newspapers described the move as a counterstrike in an escalating trade war.

A USA industry source said: "There is a 99 percent chance that tariffs go into force on Friday".

The United States plans to implement tariffs on Dollars 50 billion worth of imports from China as both nations remained locked in a bitter trade dispute that has convulsed global financial markets in recent weeks.

A senior Western diplomat told Reuters that there was no sign of any talks at the moment between the two countries, even via back channels.