Forex News 24
  • RSS

news

China says trade war with U.S. will only bring disaster to global economy

China says trade war with U.S. will only bring disaster to global economy
админ
11/03/2018

Chinese Commerce Minister Zhong Shan 300x169 - China says trade war with U.S. will only bring disaster to global economy

Any trade war with the United States will only bring disaster to the world economy, Chinese Commerce Minister Zhong Shan said on Sunday, as Beijing stepped up its criticism on proposed metals tariffs by Washington amid fears it could shatter global growth

After pressure from allies, the United States has opened the way for more exemptions from tariffs of 25 percent on steel imports and 10 percent on aluminum that U.S. President Donald Trump set last week.

On Saturday, the European Union and Japan urged the United States to grant them exemptions from metal import tariffs, with Tokyo calling for “calm-headed behavior.”

But the target of Trump’s ire is China, whose capacity expansions have helped add to global surpluses of steel. China has repeatedly vowed to defend its “legitimate rights and interests” if targeted by U.S. trade actions.

Zhong, speaking on the sidelines of China’s annual session of parliament, said China does not want a trade war and will not initiate one.

“There are no winners in a trade war,” Zhong said. “It will only bring disaster to China and the United States and the world.”

China can handle any challenges and will resolutely protect its interests, but the two countries will continue to talk, he said.

“Nobody wants to fight a trade war, and everyone knows fighting one harms others and does not benefit oneself.”

Trump’s announcement on tariffs underlined concerns about rising U.S. protectionism, which has sparked bouts of turmoil in global financial markets over the past year as investors feared a damaging trade spat will shatter a synchronized uptick in world growth.

China’s metals industry issued the country’s most explicit threat yet in the row, urging on Friday for the government to retaliate by targeting U.S. coal – a sector that is central to Trump’s political base and his election pledge to restore American industries and blue-collar jobs.

The U.S. is the world’s biggest importer of steel, purchasing 35 million tonnes of raw material in 2017. Of those imports, South Korea, Japan, China and India accounted for 6.6 million tonnes.

Trade tensions between China and United States have risen since Trump took office. China accounts for only a small fraction of U.S. steel imports, but its massive industrial expansion has helped create a global glut of steel that has driven down prices.

The dispute has fueled concerns that soybeans, the United States’ most valuable export to the world’s second largest economy, might be caught up in the trade actions after Beijing launched a probe into imports of U.S. sorghum, a grain used in animal feed and liquor.

PROTECTING AMERICAN JOBS

Zhong said U.S. official trade deficit figures had been over-estimated by about 20 percent, and in any case would be a lot lower if the United States relaxed export restrictions on some high-tech goods.

He also reiterated a previous pledge that China would lower import tariffs on consumer goods including automobiles, as part of an effort to boost domestic consumption.

Trump believes the tariffs will safeguard American jobs, though many economists say the impact of price increases for users of steel and aluminum, such as the auto and oil industries, will destroy more jobs than curbs on imports create.

Nonetheless, there is growing bipartisan consensus in Washington, and support within some segments of the U.S. business community, for the U.S. government to counter what are seen as Beijing’s predatory industrial policies and market restrictions on foreign firms.

Trump’s administration has said the United States mistakenly supported China’s membership in the World Trade Organization in 2001 on terms that have failed to force Beijing to open its economy.

Diplomatic and U.S. business sources say the United States has frozen a formal mechanism for talks on commercial disputes with China because it is not satisfied Beijing has met its promises to ease market restrictions.

Source

Related ItemsamericanChinadeficitfinancial marketsJapanmarketmarketsmetalpriceSouth Koreatradetrade warTrumpUnited Statesworld

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

Anti-spam: complete the taskWordPress CAPTCHA


news
11/03/2018
админ
Related ItemsamericanChinadeficitfinancial marketsJapanmarketmarketsmetalpriceSouth Koreatradetrade warTrumpUnited Statesworld

More in news

273116ff712463a8fe797bc26d4bddd2 400x240 - Major policy change for the FED

Major policy change for the FED

админ30/08/2020
Read More
5ecd652efa96beb5e9daab8a81713e20 400x240 - Powell expected to preview Fed’s policy framework

Powell expected to preview Fed’s policy framework

админ27/08/2020
Read More
1cfd53e4dc84605be8f34b32e1fc08ff 400x208 - European markets look defensive

European markets look defensive

админ26/08/2020
Read More
Scroll for more
Tap

Last news

  • 273116ff712463a8fe797bc26d4bddd2 95x60 - Major policy change for the FED
    Major policy change for the FED
    news30/08/2020
  • 5ecd652efa96beb5e9daab8a81713e20 95x60 - Powell expected to preview Fed’s policy framework
    Powell expected to preview Fed’s policy framework
    news27/08/2020
  • 1cfd53e4dc84605be8f34b32e1fc08ff 95x60 - European markets look defensive
    European markets look defensive
    news26/08/2020
  • cbda506728f805be55e3597fd478b623 95x60 - Another record-setting session for U.S. stocks futures
    Another record-setting session for U.S. stocks futures
    news25/08/2020
  • 3c51d052540d35f9b8497fc0b1942d58 95x60 - $50M worth of cryptos or more left China
    $50M worth of cryptos or more left China
    news23/08/2020

Tags

american Asia Bitcoin China cryptocurrency currency Dollar dollar index economic Economists EUR euro Fed Federal Reserve forex futures GBP GDP Germany Index inflation interest rate interest rates Japan losses lost market markets monetary policy Oil price prices rate rates retail rise risk sales trade trade war trading Trump UK United States US

Copyright © 2019 Forex News 24, all rights reserved.

U.S. eases way to more tariff exemptions under pressure from allies
Gold / Silver / Copper Prices – Weekly Outlook: March 12 – 16