US action ‘largest trade war in economic history’, says China




Beijing:

China on Friday reacted angrily over US President Donald Trump’s action of slapping heavy tariffs on Chinese exports, calling it “the largest trade war in economic history” between the world’s top two economies.


Beijing said that it has put into action a series of retaliatory actions against US trade which became effective the moment Trump’s decision was enforced.

But the Chinese commerce ministry did not spell out the details of its actions. “The duties are typical bullying behaviour, which will have a serious impact on the global industrial and value chain and pose obstacles to global economic recovery,” the Chinese ministry said.

China has limited scope of punishing US because its exports are limited. Besides, it cannot take negative action in several areas because it might boomerang on Chinese companies. Some American products have Chinese components in terms of machine parts made and exported from China.

China received support from an unlikely quarter, the American Chamber of Commerce in China, which expressed concern over PresideTrump’s moves.

“There are no winners in a trade war. Counter-productive import tariffs, such as these, hurt not only the economies of the US and China but those of every country in the world,” the body’s chairman William Zarit said.

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