China rejects ‘blackmail’ on eve of United States tariff hike

China rejects ‘blackmail’ on eve of United States tariff hike

USA tariffs on a range of Chinese goods will come into effect at midnight on Thursday in what could turn out to be the first fusillade in a trade war between the world's two largest export nations.

The Chinese government previously said that it will impose tariffs of equal size on U.S. goods as retaliation and reiterated that retaliation would come soon.

And a US manufacturer that exports vehicles to China recorded a 98 percent jump in random border inspections over the past month, throwing the firm behind schedule.

Gao pointed out that China is an important supporter and participant in economic globalization and global industrial chain, many of its export commodities are products made by foreign enterprises in China.

After that, the hostilities could intensify: Trump said the U.S. is ready to target an additional $200 billion in Chinese imports - and then $300 billion more - if Beijing does not yield to United States demands and continues to retaliate.

China's pioneering initiative to institutionalize trade rules and dispute mechanisms for its New Silk Road is especially impactful in making the World Trade Organization irrelevant in and of itself, but when combined with Trump's recent moves away from this globalist body, it has the effect of dealing what might be a deathblow to the group and leading to its ultimate replacement with a Beijing-led model.

Adding to the tensions, a Chinese court this week temporarily barred Micron Technology Inc from selling its main semiconductor products in the world's biggest memory chip market, citing violation of patents held by Taiwan's United Microelectronics Corp (UMC).

At the same time, China is trying to present a friendly face to foreign businesses, including American players.

The Trump administration is prepping another $16 billion worth of Chinese export tariffs after a public comment period and hearing scheduled for July 24.

Trump has threatened to raise tariffs on China to roughly the value of total Chinese exports to the U.S. previous year of $506bn.

President Donald Trump complains that the U.S. trade deficit with China is too large; that the Chinese government gives unfair support to its home-grown companies; that China steals intellectual property from the U.S. by various means.

The American Chamber of Commerce in China appealed to both sides to negotiate a settlement.

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White House trade officials say the current strength of the U.S. economy means Washington can withstand more pain than its rivals if the battle escalates further.

China's added tariffs, which follow a 25 percent duty on USA pork imports in April, are expected to undermine America's recently expanding hog industry. "We won't do it and we have told them that".

Friday's development comes as Europe, Mexico and Canada - some of America's closest allies -- are engaged in their own trade battles with the U.S.

Uncertainty about trade could make banks wary of their exposure to affected industries and hurt the price and flow of credit.

"The assault on the American auto industry is over", President Donald Trump declared last spring in Detroit, promising auto executives that he would throttle back Obama-era regulations on vehicle pollution.

China's tactics were specifically created to hurt Trump supporters, he said.

Top Economists and trade experts who testified in June before the U.S. Trump's tariffs are meant to pressure Beijing to reform its trade policies. This prompted Beijing to respond in kind with levy tariffs on USA imports, China's foreign ministry said Friday.

Trump has taken an aggressive stance on trade, fulfilling a campaign promise.

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

Friday's tariff hikes are the first stage in threatened USA increases on up to $450 billion of imports from China over complaints Beijing steals or pressures foreign companies to hand over technology. Chinese companies have started turning away from USA soybean suppliers and looking to other sources for agricultural products. -China trade war and protectionism even against USA allies such as Japan.

Tariffs have become Trump's preferred negotiating tool when it comes to trade, an approach that he says will give the USA leverage and force countries to change their policies.

In the end, the USA and China economic rivalry probably won't be decided by administrative law judges or trade negotiators, but in the global marketplace.

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