China vows to take revenge as needed after Trump threatens tariffs

The Chinese Ministry of Trade announced on Friday to “firmly oppose” US President Donald TrumpThe last threat of reinforcing tariffs on Chinese goods and vowing retaliation if necessary.

“If they are now insisting in their own way, China will take all the necessary countermeasures to defend their legitimate rights and interests,” said a spokesman for the Ministry of Trade in a statement translated by CNBC.

“We invite the US side not to repeat our own mistakes and return to the right path of the proper resolution of the conflict through a dialogue on the same basis as soon as possible,” the said.

The statement followed in Trump’s announcement on Thursday that the US Imposes an additional 10% duties to Chinese import Starting on March 4. This matches the start of Chinese annual parliamentary meetings.

The new tariffs would reach up to 10% of the additional tariffs that Trump were charging at China on February 4th.

Trump has announced two rounds of Chinese tariffs because of the role of land in Fentanil’s trade. Dependent drug, precursors mostly produced in China and Mexico, have led to tens of thousands of deaths from an overdose every year in the United States

“In the short term, the Chinese response is likely to include raising tariffs to selected American imports, adding more US companies to their unreliable list of entities and potentially additional export control on critical minerals,” said Neil Thomas, an associate of Chinese politics in Asian society, said UE.

But he expects to retaliate as Beijing will probably remain “measured” because Chinese President XI Jinping has an incentive to meet with his American colleague and start negotiations to avoid measures that exert more pressure on growth.

Chinese export was a rare light point in otherwise slowing down the economy. The US is the largest Chinese trade partner based on one country.

Although Beijing can maintain a “restrained” attitude, the upcoming moves are likely to target industries that are most important to Trump’s supporters, said Alfredo Montufar-Hel, head of the Chinese Center in the Conference Committee.

China would rather leave some space for further negotiations because they hope to avoid even greater imported tariffs and other “corrective” Washington measures, he said.

After the first round of tariffs earlier this month, Chinese retaliation were included Increasing duties to a particular import of energy in the United Statesand putting two US companies on an unreliable list of entities that could limit their business ability in the Asian country.

China has also increased the control of the exports of critical minerals that are now needed.

“The sharpest arrow that China had in its trembling would be to limit access to critical minerals that cannot be easily obtained elsewhere,” said Stephen Olson, a visiting senior colleague of the Southeast Asia Institute and former US negotiator.

On the contrary, the Ministry Statement from February 2 He urged Washington to manage the problems of the fental “objectively and rational”, while the tariff warning could harm normal economic and trade relations in China and the US.

The Chinese Foreign Ministry also encouraged the tone on Friday in response to the tariffs. The American act of “pressure, forcing and threats” China with tariffs will only reciprocate the fire, said spokesman Lin Jian to China, reported by the state media and were translated by CNBC.

Trump’s announcement of additional tariffs “will encourage China to assume that the agreement may not or may not be achieved in the short term,” Deborah Elms, head of the Hinrich Foundation, told CNBC Deborah Elms.

“This leaves Beijing with two options: either ejecting the continued answers in the hope of avoiding further escalation and perhaps even the return of existing measures; or go much larger,” she added, because “the previous” modest measures were not sufficient and the threat to the future escalation was not taken seriously enough. “