China’s state media has added a new layer of tension to the escalating trade war with the U.S., issuing a ringing defence of its country’s actions, reports CNBC.
The latest round of the dispute kicked off on Friday evening in Beijing when China’s Ministry of Finance announced it will apply new tariffs of between 5% and 10% on $75 billion worth of American goods.
In retaliation, U.S. President Donald Trump also said his administration will raise tariffs on $550 billion of Chinese imports.
State news agency Xinhua said in a commentary on Saturday: “The United States is paying the price for launching a trade war, as China is forced to announce the levy of new additional tariffs on U.S. goods.”
“Through more than a year of trade friction between the two countries, China never faltered,” said the
state news organization.
“When the U.S. side tried to intensify trade bullying and exert maximum pressure on China, it only strengthened China’s resolve, making China stand more firmly against the U.S. bullying, and defend its legitimate rights and interests,” Xinhua added.
In a tweet Friday, Trump “ordered” companies to look for an alternative to China, and urged American firms to start “bringing your companies HOME and making your products in the USA.”
Xinhua said any discussion of severing ties between U.S. and Chinese companies was “ridiculous at best.”
“Companies from both countries have been ambassadors for positive changes to the two economies,” Xinhua reported.
China Daily, another state-owned newspaper, said Sunday that “China has never been a yes-man to any country, and it is not going to be one now.”
Meanwhile, markets moved higher Monday morning as both China and the U.S. signalled a de-escalation, reported CNN.
China’s top trade negotiator began Monday by saying that the country “strongly opposes” the escalation of the trade war.
“We believe the trade war escalation is bad for China, bad for the United States and bad for the interest of the people in the world,” said Chinese Vice Premier Liu He at a conference in Chongqing, China. “We are willing to use a calm attitude to solve problems by negotiations and cooperation.”
Trump bolstered that message when he told reporters at the G7 summit in France that “China called last night” to relay a desire to return to negotiations.
“This is a very positive development for the world,” Trump said, adding later: “I think we’re going to make a deal.”
