Published: Mon, March 12, 2018
Worldwide | By Lisa Hogan

Trade war would be a global disaster, says Chinese minister

Trade war would be a global disaster, says Chinese minister

The US has chose to impose 25 percent tariffs on steel imports and 10 percent on aluminum on Thursday, with initial exemptions for Canada and Mexico, saying such results could be made for other countries through negotiations.

China does not want to enter in a war with the United States of America, as it would have devastating consequences for world's economy.

Zhong said that cooperation is the only choice for the 2 countries.

"There is no victor in a trade war", sadi Zhong during a press conference in Beijing Sunday.

"There will be no winners in the trade war, it will cause disaster for China, USA and the whole world", the Minister said.

China has steadily cut such tariffs from as high as 220% in the 1980s to 25% in 2006 - the rate it has now - as part of obligations under the World Trade Organization. "But we can handle any challenge, and will firmly defend the interests of our nation and our people", he said.

"There is no victor in a trade war", he told reporters yesterday.

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 US coal - a sector that is central to Trump's political base and his election pledge to restore American industries and blue-collar jobs.

The booth area for the International Import Expo (CIIE) slated for November in Shanghai has been over-booked by 20 percent, Chinese Commerce Minister Zhong Shan said Sunday.

Trade tensions between China and United States have risen since Trump took office.

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

The deficit could be reduced by 35 percent if the United States eased export controls on high-technology products to China, he said, citing unspecified U.S. research.

The Trump administration earlier approved higher tariffs on Chinese-made washing machines, solar modules and some other goods, prompting Beijing to accuse Washington of disrupting global trade regulation by taking action under USA law instead of through the World Trade Organization.

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