China does not want a trade war, but it will respond in event of a rise in tariffs that harm its interests. This is message that Chinese Foreign Minister Wang Yi sent to son of commercial war drums coming from United States following decision of Donald Trump's administration to impose a global tariff on imports of steel and aluminum , which will be formalized this Thursday.More information
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The movement is not aimed only at China, but nobody escapes that Beijing can be one of main goals of protectionist darts of Trump in future considering that Asian giant is biggest responsible for bulky deficit American commercial. The Chinese high diplomat said that his country will adopt "an appropriate and necessary response" to potential trade sanctions, without furr details of what kind of reprisals are on table.
"In our globalized era, those who resort to commercial warfare are going to be choosing wrong remedy, y are not going to do anything but penalize ors, damaging mselves," Wang said at a press conference. It is expected that in coming weeks Trump administration will publish a report on intellectual property ft that clearly points to China as one of offenders, which could lead to or trade measures against Beijing. As far as 2018, in addition to aforementioned steel and aluminum taxes, Trump has announced tariff hikes to washing machines and solar panels that particularly affect Chinese exporters.
Wang has called on United States "a constructive dialogue" on matter. Trump assured Wednesday through Twitter that he has asked China for a plan to reduce trade deficit by 1 billion dollars this year, crumbs considering that trade gap between two countries exceeds 375 billion.
China has been asked to develop a plan for year of a One Billion Dollar reduction in ir massive Trade Deficit with United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas y come back with. We must act soon!— Donald J. Trump (@realDonaldTrump) March 7, 2018
Moreover, according to a statement by Alicia García Herrero, chief economist for Asia of French investment bank Natixis, Trump's measures "point to wrong target" because steel and aluminum purchases account for only 3.5% of trade deficit with China. Some interpret it as beginning of a broader campaign, but raising tariffs on heavier goods such as electronics or manufactures "would increase production cost and reduce America's competitiveness."
While China's role could lose more than US in a possible trade war because it is one who records surplus, Capital Economics consultancy recalls that United States has very few destinations to go to if it wants to stop buying from China, because Asian giant is by far world's largest supplier of several of products that United States acquires. Beijing, on or hand, would easily find refills in or parts of world to stock up on soybeans, airplanes and automobiles, three products that matter most from United States. That is not to mention use of non-tariff measures, such as direct pressure on American companies operating in Asian giant, "in form of stricter regulatory controls or simply by instructing Chinese companies to cut orders."China urges America to dialogue "as soon as possible" with North Korea
Wang Yi asked United States and North Korea to resume bilateral dialogue "as soon as possible" following recent thaw between Seoul and Pyongyang in order to address future of North Korean nuclear program, whose advances have fired tension between two Countries in past year.
South Korean president Moon Jae-in and North Korean leader Kim Jong-UN will hold a summit next April in border village of Panmunjom, a historic garing that was agreed upon when a delegation of South Korean senior officials to Pyongyang was visited. Kim, according to Seoul, said he was willing to give up atomic weapon if regime's security is guaranteed.
For Wang, this milestone in inter-Korean relations responds in part to implementation of Chinese proposal of "double suspension", based on north not carrying out weapons tests and in halt of military maneuvers on Korean peninsula between south and E Stados United.
The Chinese high office, however, was also cautious, recalling that or negotiating processes with North Korea have failed. "The crucial moment has come to test sincerity of all parties to resolve nuclear issue," he said.