Asia stocks on edge before tariff deadline in Sino-US trade row

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A statement issued by China's State Council on June 16 said that retaliatory extra duties on US$34 billion of U.S. imports are set to take effect on July 6.

FILE PHOTO: The label of a Washington D.C. sweatshirt bears a U.S. flag but says "Made in China" at a souvenir stand in Washington, DC, U.S., January 14, 2011.

In meetings in Brussels, Berlin and Beijing, senior Chinese officials, including vice-premier Liu He and top diplomat Wang Yi, have proposed an alliance between the two economic powers and offered to open more of the Chinese market in a gesture of goodwill.

Chinese officials are preparing to implement them from midnight Beijing time on 6 July, Reuters reported.

Chinese state media has promoted the message that the European Union is on China's side. The past two summits, in 2016 and 2017, ended without a statement due to disagreements over the South China Sea and trade.

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Beijing time is 12 hours ahead of Washington.

"On the US's so-called list of $34 billion in taxable products, about $20 billion or 59 percent of them, are made by foreign invested enterprises, with American companies representing a significant portion", said Gao.

U.S. tariffs meant to punish China for allegedly unfair trading practices are due to take effect on Friday.

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

Chinese Foreign Ministry spokesman Lu Kang told a news conference on Monday that the reminder from the embassy in Washington was meant to inform Chinese visitors of "potential risks" when there would be a spike in trips to the U.S. during summer.

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"There is a lot of concern I think about the effect a long term trade war might have but actually if you look at the data we're seeing, the economic data is not that bad", said Michael Hewson, chief markets analyst at CMC Markets in London.

Amid the fierce polemics between Beijing and Washington concerning trade and tariffs, Chinese media have started a seemingly coordinated campaign badmouthing U.S. tourism this week, with some papers even urging Chinese tourists to take a detour to the tumultuous Xinjiang Uyghur Autonomous Region in northwestern China instead. Japan's government has warned in a report that a higher USA tariff on auto imports could backfire, jeopardizing hundreds of thousands of American jobs created by Japanese auto-related companies, raising prices for US consumers and devastating the USA and global economy.

China also has plans for a second round - but no start date - that would affect $16 billion of such U.S. goods as chemicals, coal, crude oil and medical devices.

On June 15, the Trump administration said it would introduce additional 25-percent duties on 818 items of Chinese imports worth $34 billion on July 6.

"While the Trump administration is anxious about gains and losses, Chinese people have unfaltering confidence in China's future".

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