Analysts say conflict could damage the global economy, but Chinese social media users are more interested in a ship full of soybeans
The “biggest trade war in economic history” began on Friday, China said after Washington and Beijing traded 25 per cent tariffs on US$34 billion worth of each other’s goods, while analysts warned the dispute was set to run and run.
Wei Jianguo, a former deputy Chinese commerce minister, said the conflict would affect the global value chain and people should not expect a swift resolution.
“The trade war will last for a long time,” he said.
Now vice-chairman of the government-backed China Centre for International Economic Exchanges, Wei said that China was “prepared to fight… to defeat the [unilateralism] of the US”.
At 12 noon Beijing time, Washington made good on its promise to impose fresh tariffs on goods it imports from China.
US President Donald Trump told reporters aboard Air Force One that similar duties could be applied to a further US$16 billion of Chinese products in two weeks’ time, while the total value of goods affected could rise to US$550 billion if Beijing hit back.
China’s commerce ministry said in a statement that Beijing had been “forced to strike back to defend the core interests of the nation and its people”. The customs administration said later that the retaliatory tariffs took effect just seconds after those imposed by the US.
Beijing said also that it will file a complaint against the US with the World Trade Organisation.
According to information published on June 15 by the Office of the US Trade Representative, Friday’s tariffs apply to 818 Chinese products, from semiconductors to plastics. Whether duties will be applied to a second batch of 284 items, including many that come under the “Made in China 2025” banner – Beijing’s plan for industrial upgrading – is still pending a public hearing.
The Chinese tariffs apply to soybeans, fruit, fish and cars.
