This article was first published on Orbex Forex Trading Blog.
The global concern for a trade war continues to build as the rhetoric between the US and China has intensified over the last week.
Chinese state media has criticised the moves by the White House, labelling the Trump administration “selfish”, “rude” and “mundane”. An editorial in the state owned Global Times said on Sunday “the unpredictability of the Trump administration has become mundane, or even boring for China”… “It reinforces the difference in images of the two countries: one challenges the foundation of global trade through sudden attacks; and one that is prepared to defend itself in a trade war that it cannot avoid.”
Alongside this, an editorial in the People’s Daily, also over the weekend, added that Trump’s moves have given China the opportunity “to see more clearly the face of the Trump administration”. Furthermore, and in a more poetic take on things, China’s official Xinhua news agency said “the wise man builds bridges, the fool builds walls. With economic globalisation there are no secluded and isolated islands”.
China To Retaliate
These comments come in the wake of recent moves by the US with Trump last Friday unveiling a list of $50bln in Chinese goods which will be hit with a 25% tariff along with a declaration of intent to target further restrictions if China retaliates. Despite this threat, China responded almost immediately, releasing a list of tariffs to hit $50bln of US imports.
The list of goods to be targeted by China in retaliatory tariffs, numbering more than 500 categories, includes beef, poultry, pork, dairy products, seafood, tobacco and soybeans which is significant as China is the biggest buyer of US soybeans. Furthermore, China has said it will target an ...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.