China vows to fight back as the trade war escalates

China vows to fight back as the trade war escalates

The United States had just imposed tariffs on Dollars 34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on USA imports in the first shots of a heated trade war.

The trade confrontation between Washington and Beijing has been escalating for months, despite Trump's repeated statements that he has a good relationship with China's President Xi Jinping.

TRT World's Kevin McAleese reports from Washington DC.

Lighthizer said last night: "For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition".

But China has rebuffed USA complaints and denied any harm was done to US companies, and instead retaliated "without any worldwide legal basis or justification", Lighthizer said.

Investors fear an escalating trade war between the world's two biggest economies could hit global growth. Beijing has vowed to retaliate dollar-for-dollar. China has vowed to retaliate dollar-for-dollar to any further US tariffs.

"The behavior of the United States is hurting China, hurting the world, and hurting itself", the ministry said in a statement, adding that it was "shocked" by United States actions.

On Wednesday, China's main stock index lost 1.8 percent and Japan's market benchmark fell 1.1 percent.

USA stocks fell but were not hit as hard as in Shanghai, where shares .SSEC closed 1.78 percent lower and the yuan CNY= weakened toward last week's 11-month lows.

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The move makes good on the president's threat to respond to China's retaliation for the initial us tariffs on $34 billion in Chinese goods, which went into effect on Friday and would eventually place almost half of all Chinese imports under tariffs. It's an extensive list of over 6,000 goods that include seafood, propane and toilet paper, among many other things.

Some US business groups and senior lawmakers were quick to criticise the move. That's why Trump can slap tariffs on them just because he feels like it.

Senate Finance Committee Chairman Orrin Hatch, of Utah, called the new levies "reckless" and not "targeted".

The National Association of Manufacturers also criticized the US decision, saying this latest round of tariffs could undermine the economic gains from the administration's tax and regulatory reform policies.

"Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters". Imposing taxes on another $200 billion worth of products will raise the costs of every-day goods for American families, farmers, ranchers, workers, and job creators.

Beijing "never yields to threat or blackmail" and will retaliate against the "groundless" tariffs, China's Vice Minister of Commerce Wang Shouwen said in written comments to Bloomberg.

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China is no stranger to trade fights, but their approach toward the USA is being handled differently than prior battles. "So, now he's fighting two wars and that's a bit complicated", Tal said.

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