Published: Sun, August 04, 2019
Worldwide | By Lisa Hogan

‘It’s time China change things around’, says Donald Trump

‘It’s time China change things around’, says Donald Trump

A Chinese Commerce Ministry spokesman promised to hit back, saying in a statement that if the U.S. introduces the new taxes on Sept 1, Beijing will take countermeasures "to resolutely defend the core interests of the country and the fundamental interests of the people".

The latest round of announced tariffs, which would go into effect September 1, more directly affect US consumers shopping at Walmart or Target.

The statement issued Friday continued, "All the consequences will be borne by the United States".

China on Friday threatened retaliation if U.S. President Donald Trump's planned tariff hikes go ahead, while the renewed acrimony between the two biggest global economies sent stock markets tumbling.

According to a Commerce Department report, the total value of bilateral goods exchanged with China fell 14 per cent in the first half of the year to Dollars 271.04 billion, The Wall Street Journal reported.

The ongoing trade war is hurting China more than the US, according to one China expert.

President Trump indicated on Thursday that should trade talks fail to progress, he is prepared to impose further tariffs above 10%.

Still, there are signs of the economic toll of the trade dispute between the United States and China, which this week reported slowing manufacturing activity in July.

The announcement by Trump on Thursday that Washington would impose 10 percent tariffs on another $300 billion in Chinese goods sparked a broad-based sell-off across the globe.

China imported USA goods worth about $160 billion previous year.

The latest round of duties comes amid growing concern that Mr Trump's strategy may be backfiring.

"After the US-China summit meeting, people had expected there would be a lull for quite some time", said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. If they don't want to trade with us anymore, that would be fine with me.

Earlier on Friday, Chinese Foreign Ministry spokeswoman Hua Chunying said China was holding firm to its position in the 13-month tariff brawl with the United States. The U.S.is also "getting supply chains out of China".

"We are particularly concerned about increased regulatory scrutiny, delays in licenses and approvals, and discrimination against USA companies in government procurement tenders", said the U.S. Trump said, referring to the highly potent and addictive opioid.

USA manufacturing activity also slipped last month, dropping to a near three-year low, and construction spending fell in June as investment in private construction projects tumbled to its lowest level in 1-1/2 years, data showed.

The level of seven yuan to the dollar has no economic significance, but could revive US attention to the exchange rate.

The United States also has yet to ease restrictions on US companies' sales to Chinese telecommunications giant Huawei, which Trump had pledged as a goodwill gesture to Xi after meeting at the G20 in Osaka.

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