BEIJING (AP) China says its girded for a trade war with the U.S. and can give as good as it gets, but behind the official bravado lies a deep unease over trade friction with Washington.
There are those who believe the U.S. must lose and China must win, Li Xiao, a leading economics professor, said in a commencement speech last weekend at northern Chinas Jilin University.
I think this is wishful thinking that defies common sense, Li said in remarks that circulated widely online this week, praised as a reality check as the worlds two largest economies stood ready to exchange tit-for-tat tariffs on tens of billions of dollars of each others goods starting Friday.
China has said it will fire back with corresponding tariffs if the U.S. follows through on its threat to impose 25 percent duties on $34 billion in Chinese products. All told, U.S. President Donald Trump has said he is prepared to levy higher taxes on up to $450 billion in Chinese imports, or nearly 90 percent of the goods China shipped to the United States last year.
Taking a defiant stance, a spokesman for the Chinese Commerce Ministry today said, China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade.
China will never fire the first shot, Gao said. However, if the United States adopts taxation measures, China will be forced to fight back to defend the core interests of the nation and the interests of the people.
The trade dispute has roiled the stock market, where the benchmark Shanghai Composite index has tumbled 12 percent in the past two weeks. Uncertainty over trade is taking a toll, analysts say.
Chinese exporters of tools, lighting and appliances say U.S. orders have shrunk as customers wait to see what will happen to prices.
In fighting back, China could impose onerous regulatory and bureaucratic hurdles on U.S. companies Chinese operations. Beijing has used such tactics in dustups with various countries, including South Korea, Australia and Norway.
