MOFCOM: China to respond to tariffs with retaliatory measures on US goods

[TaiShang]

China to respond to tariffs with retaliatory measures on US goods

CGTN
2018-09-18

China will levy retaliatory tariffs simultaneously with the US on American imports in response to Washington's latest announced round of tariffs, a spokesperson of China's Ministry of Commerce (MOFCOM) said on Tuesday.

"We feel deeply regretful over the decision. China will be forced to take synchronous countermeasures to safeguard our legitimate rights and interests as well as the global free trade order," the spokesperson said.

The remarks were made after US President Donald Trump on Tuesday announced additional tariffs on roughly 200 billion US dollars' worth of imports from China.

The US tariffs will take effect from September 24, 2018, and be set at a level of 10 percent until the end of the year. From January 1, 2019, the tariffs will rise to 25 percent.

"[We] hope that the US side recognizes the potentially harmful consequences of such an action and timely rectify the situation with convincing means."

Shortly after MOFCOM, China's Ministry of Foreign Affairs also reiterated China's stance on the issue, condemning the US's new tariff move as a "lack of sincerity and goodwill."

"China has repeatedly stressed that dialogue on the basis of equality, integrity and mutual respect is the right way to resolve the issue," foreign ministry spokesman Geng Shuang said. "The US's current unilateral trade actions are unacceptable."

The fresh tariff threat may also cast shadows on a possible new round of trade talks between China and the US which the two countries were previously working on.

"The US's action is not conducive to maintaining the global free trade order, it also brings new uncertainties to our bilateral negotiations," Geng told a daily presser on Tuesday.

https://news.cgtn.com/news/3d3d414e35636a4d7a457a6333566d54/share_p.html

@Cybernetics , @haidian , @TANAHH , @oprih , @Daniel808

 

[Daniel808]

US of A need to learn, China is not japan that easily unconditionally surrender to you with Plaza Accord.

Chinese people will fight back this Cowboy no matter what

#Finish this fight

 

[Rollno21]

US of A need to learn, China is not japan that easily unconditionally surrender to you with Plaza Accord.

Chinese people will fight back this Cowboy no matter what

#Finish this fight

#finish this fight sounds like you Are desperate to end fight .it should be something like #fight to the end

 

[Daniel808]

#finish this fight sounds like you Are desperate to end fight .it should be something like #fight to the end

No, fight to the end is for desperate one like japanese banzai desperate attack in ww2.

Meanwhile, #finish this fight is like hashtags for Allied troops in ww2, to finish this fight as a winner.

because this fight (war) is a beggining for winning side like China, not the end.

 

[TaiShang]

China to impose tariffs on additional $60 bln of US imports

CGTN
Updated 2018-09-18

China will impose additional tariffs on US imports in retaliation against new US tariffs on Chinese goods, according to an official statement released by the Finance Ministry on Tuesday.

Approved by the State Council, the Customs Tariff Commission of the State Council has decided to impose additional duties of either five or 10 percent on 60 billion US dollars' worth of US products.

The new tariffs will be applied to 5,207 US products ranging from farm products, liquefied natural gas (LNG) and machinery to chemicals.

The additional duties will take effect at 12:01 a.m. on Sept. 24, 2018.

The Trump administration announced on Monday it will proceed with 10 percent tariffs on 200 billion US dollars of Chinese goods. China responded saying it has to fight back to safeguard its legitimate rights and interests as well as the global free trade order.

China's proposed tariffs, which were pledged when the US first announced its tariff plan on 200 billion US dollars of Chinese imports, are a lower volume than the original plan.

The tariff rates will be levied at five and 10 percent, instead of the previously proposed rates of five, 10, 20 and 25 percent, according to the statement.

China will impose a 10 percent tariff on US products it previously designated for a rate of 20 and 25 percent. Liquefied natural gas (LNG), for example, was previously under the 25 percent tariff category but now will be subject to a tariff of 10 percent.

***

Now the US may go on with additional tariffs.

China's tariffs are well-selected, aimed to hurt the US most, not emotional and personal, unlike those of US regimes.

The US is a major importer, not exporter. So, tariffs war is a wrong war to fight the world's largest exporter.

That's probably why, so far, the tariffs led to:

1. Increase in China's exports to and decrease in imports from the US.

2. Historical highs in trade surplus with the US.

3. A general decrease of US share in China's total exports and imports.

4. General increase in China's international trade.

5. Historical highs in China's global trade surplus.

Therefore, US tariffs must be encouraged as China further diversifies its trade destinations and undermines the US relevance in global trade.

US must not stop at this stage.

@Cybernetics , @TANAHH , @Kai Liu

 

[TaiShang]

***

Sept 17, 2018 08:54 PM

China Could Ban Exports of Products Crucial to U.S. Manufacturers, Former Finance Minister Says

By Lin Jinbing

Former Finance Minister Lou Jiwei suggested that China could impose a retaliatory ban on exports of key Chinese products, materials and components used by U.S. manufacturers. Photo: VCG
* Lou emphasized at forum that he was only offering an analysis of a possible scenario, and his views do not represent those of the Chinese government

* The U.S. could create an alternative supply chain, but that would take three to five years, he said

(Beijing) — China could respond to U.S. tariffs by banning exports of key components, intermediate materials and equipment that U.S. manufacturers depend on, former Finance Minister Lou Jiwei suggested at a forum.

https://www.caixinglobal.com/2018-0...s-former-finance-minister-says-101327135.html

@qwerrty , @Daniel808

 

[Globenim]

The Trump regime is running out of options and more importantly time.

As quick as China fired back as quick the Trump regime made concessions to rush into agreements with the EU and granted exceptions for "allies" to get its back free while dealing with China. Now it has fired the biggest shot trump had dangled around for longer than half a year in front of ignorants, yet China returned the fire every time and made no budge and kept growing strongly and worse the American public has lost interest while the U.S. media struggles to follow orders from above to fuel this "war" with words and unilateral victory proclamations.

They even blinked twice already when they took the initiative to invite China to negotiation tables to feign progress and in hope to get something out they could spin to a propaganda victory at least in front of the American population. Only to get snubbed by China.

Now it can only go on touchy grounds that will trigger a troublesome vocal demographic and inevitably lead to more civil unrest in the U.S. than China.

 

[Imran Khan]

60bn$ is not enough 200 vs 200 is equal

 

[Zsari]

60bn$ is not enough 200 vs 200 is equal

Worry not, there will be measures that are unannounced, some of which cannot be announced.

 

[hoangsa74]

The u.s can tax on 500 billion of chinese goods while the chinese can only tax 150 billion of American goods. I'm ok with that

 

[LASER1]

China Could Ban Exports of Products Crucial to U.S. Manufacturers, Former Finance Minister Says

Reminds me of the 2010 REE saga with Japan and how Chinese supply went from almost 97% to 70% now with a downward trend. It will only affect your credibility. Chinese govt have learned their lesson and I don't think much will be done by them like putting an embargo on exports to the US.

 

[TaiShang]

China to counter US tariffs

By Wang Cong Source:Global Times Published: 2018/9/18

No way China can accept trade talks invitation, says expert


Showing defiance in the face of intense pressure from the US, China on Tuesday said it would not back down from an escalating trade standoff with the US, vowing to take measures to counter the latest round of US tariffs on billions of dollars worth of Chinese goods.

Defying widespread opposition at home and abroad and global trade rules and norms, the US on Tuesday announced new tariffs on $200 billion worth of Chinese products while threatening to impose additional tariffs on all Chinese goods if China retaliates.

The announcement immediately drew a brief but firm response from China. In an online statement, the Chinese
Ministry of Commerce (MOFCOM) said China would have to take countermeasures.

"To safeguard its legitimate rights and interests and the global free trade order, China will have to counter at the same pace," the statement said. "We hope the US realizes that this kind of behavior could lead to negative results and require convincing means to correct it in time."

In response to the US tariffs, China on Tuesday announced it would impose tariffs of 5 and 10 percent on $60 billion worth of US goods in more than 5,000 product categories, also starting Monday (September 24), the Customs Tariff Commission of the State Council said in a statement.

"The Chinese side reiterates once again that the aforementioned tariff measures are aimed at containing trade tensions from further escalating and is a forced response to US unilateralism and trade protectionism," it said.

China on Tuesday also filed a lawsuit at the WTO against the latest round of US tariffs, the MOFCOM said.

While Chinese officials refrained from announcing specific countermeasures on Tuesday, analysts said that China has options at its disposal to inflict pain on the US economy in defending its economic interests.

China has already announced tariffs on $60 billion worth of US goods in response to US tariffs on $200 billion in Chinese products, which analysts said would immediately take effect after the US tariffs are imposed.

Analysts have suggested that China could also put restrictions on Chinese-made parts, materials and equipment that the US is dependent on, take regulatory measures against US products and companies as well as unload its massive US Treasury holdings.

"While we can't openly discuss many options, China certainly has many ways of countering the US," said Huo Jianguo, vice chairman of the MOFCOM's China Society for WTO Studies. "Maybe some of these options are not ideal, and would hurt both sides, but to defend our own interests, we would have to do it."

Huo noted that by imposing the new tariffs, US President Donald Trump is trying to take advantage of recent downward pressure on the Chinese economy and project personal strength amid political turbulence at home, but such a move might be "misguided."

While China has seen slowing growth in investment and consumption, "our system makes the economy much more resilient," he said, "[Trump] is squandering the credibility and interests of the entire US."

Renewed uncertainty

The latest round of US tariffs, which are set to take effect on Monday, came just days after Chinese officials confirmed that US officials have invited them for a new round of talks in Washington.

While there is no official word on whether China has accepted the invitation, the MOFCOM statement said that the tariffs have brought "new uncertainties" to trade talks.

"The Chinese side has repeatedly stressed that dialogue and consultations based on fairness, integrity and mutual respect are the only correct course for addressing economic and trade issues between China and the US," Geng Shuang, a spokesperson for the Chinese Ministry of Foreign Affairs, told a routine press briefing on Tuesday. "Right now, the US actions do not reflect sincerity and goodwill."

Huo said that there is no way China can accept an invitation to trade talks with the imposition of new tariffs.

"It just doesn't work like that: pointing a gun at my head and forcing me to negotiate," Huo told the Global Times on Tuesday. "Such a tactic is beyond common sense and might work with other countries, but not with China."

He Weiwen, a former economic and commercial counselor at Chinese consulates in San Francisco and New York, said that whether it be imposing additional tariffs or inviting Chinese officials to new talks, the US' intention has not changed, which is to force China into making concessions.

"The US must understand that it has chosen the wrong target. China can't and won't back down," He told the Global Times on Tuesday, noting that China must be prepared for both talks and a fight.

Although the trade friction with the US is escalating, the Chinese government is increasing engagement with foreign companies in China.

On Monday, Chinese Commerce Minister Zhong Shan met with executives from six foreign companies, including two US firms. At the meeting, Zhong reassured executives that China would continue to open up, improve intellectual property protection and create a better business environment, read a statement released on MOFCOM's website.

This shows China's confidence in its economy and determination to push the opening-up to offset US tariffs, so that this could bring greater opportunities to friendly foreign companies and investors in China, analysts said.

@Zsari

 

[Solomon2]

"It just doesn't work like that: pointing a gun at my head and forcing me to negotiate," Huo told the Global Times on Tuesday. "Such a tactic is beyond common sense and might work with other countries, but not with China."

Contrast:

So, China's Communists are used to threatening others that way but this generation of leaders never thought that they might be looking down the gun barrel themselves.

The U.S. is in the middle of an economic boom. China's tariffs on U.S. exports to China affect mostly raw materials and will thus mean even cheaper goods for Americans. I call this, "pushing on a string": there is nothing pushing the U.S. to negotiations here.

 

[bolo]

On Monday, Chinese Commerce Minister Zhong Shan met with executives from six foreign companies, including two US firms. At the meeting, Zhong reassured executives that China would continue to open up, improve intellectual property protection and create a better business environment,

China is softening up. Chinese unable to win this trade war .

 

[Kyle Sun]

China is softening up. Chinese unable to win this trade war .

Actually, I don't need to win. We just make the US suffering at any price.