Amid Trump threats of more tariffs China to send delegation to US

Amid Trump threats of more tariffs China to send delegation to US

China's commerce ministry said on Wednesday it would take retaliatory measures if Washington went ahead with a plan to raise tariffs on Chinese imports on Friday. But on Sunday, President Donald Trump unexpectedly expressed frustration at the pace of talks and vowed to raise tariffs on $USUS200 billion in Chinese products from 10 per cent to 25 per cent.

With less than 36 hours before the higher tariffs take effect, investors are on edge over the risk that talks between the world's two-biggest economies will derail, sinking hopes for a lasting truce to their trade war.

The ruling Communist Party's People's Daily newspaper said the size and strength of the Chinese economy meant it had little to fear from tariffs.

Trump imposed the 10 percent tariffs on Chinese goods in September, while an increase set for January was postponed to allow negotiations to continue.

"The President did not appreciate this effort to renegotiate", said Michael Pillsbury, a China scholar at the Hudson Institute who advises the Trump administration.

Sources with knowledge of the talks told Reuters that China has sought to alter previously agreed provisions specifying changes to Chinese laws affecting almost every chapter of a almost 150-page proposed trade deal between Washington and Beijing.

More news: Families of Lion Air crash victims criticise Boeing over alert issue

The drop in the Chinese markets was more severe, with the Shanghai Composite Index falling by 6 per cent on Monday and the Shenzhen Component Index plummeting by 8 per cent.

Late on Monday, US trade representative Robert Lighthizer accused China of trying to substantively change the text of a deal between the two countries as it neared its final stages.

Prior to the Ministry of Commerce's announcement, Geng Shuang, a spokesperson of the Ministry of Foreign Affairs, said on Monday that Chinese negotiators were still preparing to head to the US, without specifying whether Liu would go. He declined to give specifics and said the USA side had originally hoped to conclude a deal one way or the other this week. "China won't shun problems and is honest about continuing talks". Biden has been criticized in recent weeks for playing down the economic threat posed by China, arguing the U.S.is in a much stronger position than Trump credits it with.

Beijing's top trade negotiator, Liu He, is traveling to the US on Thursday and Friday for high-stakes talks.

"China supplies the United States with several chemicals which are not available anywhere else and which are critical inputs to U.S. manufacturing", he said, noting that China is also is the number three USA export market. The Times calls Trump's decision "a political calculation that staying tough on China will be a better proposition in the 2020 campaign" than entering into the deal many expected to be finalized. It also would seem to be inevitable that there could be isolated events of layoffs, furloughs, hiring freezes and financial losses in many street-level instances. But people close to the situation say if the talks go well, the tariffs may not happen.

They will only hit goods that depart from China starting on Friday. "If China only sends a junior team to the U.S., the market might have to wait longer to see who blinks first".

Related Articles