China vows to retaliate against U.S. tariffs in trade dispute escalation

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China's response to the list includes Soybeans - a massive moneymaker for US farmers - Sorghum and Cotton.

Chinese Commerce Ministry spokesman Gao Feng said on Thursday that the proposed USA tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

Analysts at Bank of America Merrill Lynch forecast only a modest escalation in the US-China battle, adding: "However, we can't rule out a full-blown, recession-inducing "trade war".

"We can probably say that the trade war has officially started", said Chen Feixiang, professor of applied economics at Shanghai Jiaotong University's Antai Colege of Economics and Management.

The official China Daily newspaper accused the Trump administration of "behaving like a gang of hoodlums".

Speaking at a weekly news conference, Commerce Ministry spokesman Gao Feng warned the proposed USA tariffs would hit worldwide supply chains, including foreign companies in the world's second-largest economy.

Atlanta Fed President Raphael Bostic said in June that companies are setting the bar for investing in new projects "quite high".

Beijing apparently agrees: State-run news outlet Xinhua reposted the commentary on its website (link in Chinese).

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Li further added that he and workers at his factory are "not so worried" because they have a price advantage over competitors.

The first phase of that will affect $34 billion worth of goods.

The company said it had already moved some production to the U.S. and Mexico and would likely move more.

"China is a big market for us".

Trump has for years slammed what he describes as Beijing's underhanded economic treatment of the United States in terms of trade, with the U.S. trade deficit in goods with China ballooning to a record $375.2 billion last year. "So we have 50 plus 200 plus nearly 300".

The Trump administration is poised to impose taxes on $50 billion of Chinese imports in high-tech industries, such as robotics, aerospace, and industrial machinery, in an attempt to punish Beijing for intellectual property theft and to rebalance a trade deficit.

Trump's tariffs are the result of an investigation by the administration into the theft of U.S. intellectual property by Chinese firms and their government.

But China is certainly committed to the strategy: it needs it, to make the shift from a low-wage industrialised economy to a high-wage, hi-tech one. Domestic consumption now accounts for more than half of the country's GDP.

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Adding to concerns this week was a leaked report suggesting Trump had asked his officials to look at pulling the usa out of the World Trade Organisation (WTO) altogether.

As the tariffs approached, the USA central bank warned the impending trade battle was beginning to darken the otherwise blue skies of the robust American economy, now in its 10th year of recovery.

Substantial they may be, but the average USA consumer will likely not see these impacts directly for a little while.

China's foreign minister said trade protectionism and unilateral actions were "short-sighted" and in a statement on Friday called on European counties to work with China to safeguard a globally free trade system.

"The US's measures are essentially attacking the global supply and value chain".

The new tariffs will bring back a level of American protectionism that has not been seen since 1970 when the average charge stood at 6.5%.

"China can make it much more hard to operate on the mainland", Haft says.

There did not appear to be any direct instructions to hold up cargoes, but some customs departments were waiting until they had received official guidance from the central government on imposing hefty import tariffs on hundreds of products, the sources said.

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