Beijing is still talking about a trade war with the U.S., warning that President Donald Trump’s proposed trade penalties could lead to conflict.
“We hope the United States can rein in its horse before the edge of the cliff, or else we will fight to the end,” Chinese Ministry of Commerce spokesman Gao Feng said Thursday, reiterating a point recently made by the Chinese Embassy in the U.S.
The president recently announced a plan to impose around $60 billion in trade penalties on China for alleged theft of American intellectual property. The announcement followed an earlier revelation that the U.S. would place a 25 percent tariff on foreign-made steel and ten percent on aluminum. China expressed dissatisfaction with both decisions.
“China does not want a trade war with anyone,” the Chinese Embassy in the U.S. said in a statement after Trump announced his most recent plan to combat so-called Chinese economic aggression. “But, China is not afraid of and will not recoil from a trade war. China is confident and capable of facing any challenge. If a trade war were initiated by the U.S., China would fight to the end to defend its own legitimate interests with all necessary measures.”
Gao decried Trump’s plan as a “flagrant violation” of World Trade Organization rules that may “trigger a chain reaction” that could prove harmful to global economic growth.
After Trump revealed his intention to impose heavy penalties on China for intellectual property theft and forced technology transfers, Beijing complained on an almost daily basis and stocks plummeted as fears of a trade war loomed. These fears were exacerbated when China revealed plans to target nearly $3 billion worth of American goods.
Reports surfaced Monday that China was taking steps to expand market access and meet certain U.S. demands designed to ultimately reduce the massive $375 billion U.S. trade deficit with China. As those reports emerged, stocks soared. The Dow Jones had its third-largest point gain in history Monday with a surge of 669 points.
China may be taking steps to resolve long-standing trade disputes through negotiation and dialogue with the U.S. However, it seems Beijing is inclined to continue to publicly make trade war threats.
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