News ID: 219441
Published: 0202 GMT August 06, 2018

China state media attacks Trump policies on trade

China state media attacks Trump policies on trade
DAMIR SAGOLJ/REUTERS

China's state media on Monday lashed out at the policies of US President Donald Trump in an unusually direct attack, accusing him of "starring in his own carefully orchestrated street fighter-style deceitful drama".

Trump's wish for others to play along with his drama is "wishful thinking," the ruling Communist Party's People's Daily newspaper said in an editorial, Reuters reported.

The editorial said the US had escalated trade friction with China, and turned international trade into "zero-sum game".

"Governing a country is not like doing business," the editorial said, arguing that Trump's actions imperiled the national credibility of the US.

The state media sought to reassure investors anxious about China's economy as growth concerns battered its financial markets.

The heated dispute between the world's two biggest economies has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent months. Last month, the International Monetary Fund warned that escalating trade conflicts following US tariff actions on its trading partners threaten to derail the global economic recovery.

The United States and China implemented tariffs on $34 billion worth of each other's goods in July. Washington is expected to soon implement tariffs on an additional $16 billion of Chinese goods, which China has already said it will match immediately.

On Friday, China's Finance Ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States worth $60 billion.

That move was in response to the Trump administration's proposal of a 25-percent tariff on $200 billion worth of Chinese imports.

 

“US now has upper hand on China”

 

Trump defended his use of tariffs, telling an audience of diehard supporters on Saturday that playing hardball on trade is “my thing,” Bloomberg reported.

“We have really rebuilt China, and it’s time that we rebuild our own country now,” Trump said. He added that Chinese stocks are down, weakening that nation’s bargaining power in the escalating trade war.

Trump continued his focus on tariffs Sunday morning, tweeting that the duties are working “big time” and that imported goods should be taxed or made in the US. He also suggested duties will allow paying down “large amounts of the $21 Trillion in debt that has been accumulated” while reducing taxes for Americans.

“Every country on earth wants to take wealth out of the US, always to our detriment,” Trump tweeted, “I say, as they come, Tax them.”

The trade war, rising corporate bankruptcies, and a steep decline in the value of the yuan versus the dollar have raised concerns that China's economy could face a steeper slowdown.

Recent data showed growth has already started to cool. The government has responded by releasing more liquidity into the banking system, encouraging lending and promising a more "active" fiscal policy.

US companies are putting in place measures to cushion the impact of the trade row, including price hikes, and a number of companies – from industrial firms to home furnishers and toymakers – have said they will move some sourcing and manufacturing outside of China.

China's exports are expected to have maintained solid growth in July despite the new tariffs on billions of dollars of shipments to the US, though the outlook has darkened as both sides raised the stakes in the trade brawl.

   
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