Waves caused by Typhoon Maria surge over a Sinopec gas station in Wenling in China’s eastern Zhejiang province on July 11. China yesterday said tit-for-tat tariffs will ‘destroy’ trade between the world’s top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on US$200 billion in Chinese goods. — AFP photo
BEIJING: China yesterday said tit-for-tat tariffs will ‘destroy’ trade between the world’s top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on US$200 billion in Chinese goods.
“The outburst of large-scale mutual levying of tariffs between China and the United States will inevitably destroy Sino-US trade,” assistant minister of commerce Li Chenggang told a forum in Beijing.
US policy “actually interferes with the process of economic globalisation” and “damages the world economic order,” charged Li.
On Friday, the US imposed 25-per cent tariffs on around US$34 billion in Chinese goods, sparking an immediate dollar-for-dollar retaliation from Beijing.
Washington on Tuesday announced it was starting the process to slap 10-per cent tariffs on another US$200 billion in Chinese export goods as soon as September.
Analysts have warned that a spiralling trade war between the world’s two financial powerhouses could have a damaging impact on the global economy.
“It is a chaotic time in international trade,” said Li.
He added: “Companies in both countries will suffer losses. There is no winner in a trade war.
“Cooperation is the only correct choice between China and the United States.”
“It seems that the US is escalating the scale of this trade friction,” said Li, adding: “The negative impact of the trade friction has already appeared.” — AFP