Analysts warn a full-blown trade war could disrupt global trade and shrink annual economic output of the US and China.
China is ready to retaliate if US President Donald Trump goes ahead with a tariff hike on $200bn worth of Chinese goods and is confident it can maintain « steady and healthy » economic growth.
The Trump administration is poised to impose 25 percent penalties on Chinese goods in a new escalation of their trade war over US complaints that Beijing steals or pressures companies to hand over technology.
China has announced a $60bn list of American products targeted for retaliation.
« China will have to take necessary countermeasures if the US side ignores the opposition of the overwhelming major of its enterprises and adopts new tariff measures, » Commerce Ministry spokesman Gao Feng said.
Trump initiated the trade war to punish Beijing for what it said are China’s predatory tactics to try to supplant US technological supremacy.
Those moves, the Office of the US Trade Representative has alleged, include stealing trade secrets through computer hacking and forcing US companies to hand over technology in exchange for access to the Chinese market.
Beijing has rejected US pressure and negotiations between the two countries have stalled.
The US has already imposed tariffs on $50bn worth of Chinese products.
Beijing has punched back with tariffs on $50bn in American goods. These US products include soybeans and beef – a direct shot at supporters of Trump in the US farm belt.
