China target tariffs to protect domestic industries

  • China target tariffs to protect domestic industries
    Independent.t. E.
    China will continue to beat back in Washington have more trade tariffs, but his counter-strikes will remain the most targeted, so as not to hurt Chinese or foreign enterprises in China, the Minister of Finance Liu kun said.
    https://www.independent.ie/business/world/china-targets-tariffs-to-protect-home-industries-37250020.html
    https://www.independent.ie/business/article37250019.ece/68c7c/AUTOCROP/h342/2018-08-25_bus_43550054_I2.JPG

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China will continue to beat back in Washington have more trade tariffs, but his counter-strikes will remain the most targeted, so as not to hurt Chinese or foreign enterprises in China, the Minister of Finance Liu kun said.

Now the influence of China and the United States “trade friction” in the Chinese economy was small, but Mr. Liu, 61, said he is concerned about the possibility of job loss.

In his first interview after taking office in March, he said that the Chinese government will increase the cost of support workers and the unemployed, who carries the damage from the trade conflict. He also predicted the issue of bonds by local governments to support infrastructure investment this year will pick up and break one trillion yuan.

Trade, the conflict escalated on Thursday, as the United States and China heaped more tariffs on the goods each other. Since the beginning of July, the two largest economies in the world have slapped each other with tariffs on a combined $100 billion (sum 86).

“China does not wish to engage in a trade war, but we will resolutely respond to the unreasonable measures taken by the United States,” Mr. Liu said. “If the United States will insist with these measures, we will take action to protect our interests.”

Still China either imposed or proposed tariffs on $110bn of American goods, which account for a large part of US imports. Extraction of crude petroleum and large aircraft are the primary products that are not yet meant to be penalties. Talks between mid-level officials ended Thursday without progress.

When asked if China intends to consider the question of increasing tariffs on American goods that are already faced with a tax increase, Mr. Liu said that China will answer with precision.

“We respond in an accurate way. Of course, the value of American imports of Chinese products does not match the value of Chinese imports of American goods. We take tariff measures in accordance with this situation,” he said, without elaborating.

But China is aware of the potential for bystanders to be caught in the line of fire, he said.

“When we take action, we will try our hardest not to harm the interests of foreign business in China. That’s why our tariff measures are designed to avoid impact on them as much as we can,” said Mr. Liu.

Some U.S. companies and industry lobby, including the U.S. chamber of Commerce, criticized the us imposition of President Donald trump punitive tariffs on Chinese goods, the Chinese say revenge it causes will hurt businesses that already face increased competition from local competitors in China. Us fast food, drinks and coffee chains, including Starbucks and yum brand in China in KFC are widely distributed in Chinese cities. Us-brand infant formula, clothes, cars and phones are also popular.

The US tariffs will hurt the Chinese economy, although modestly, and their influence will be even more noticeable if frictions continue, Mr. Liu said.

Mr. Liu spent more than two decades, the government of Guangdong province, taking on various roles, including head of its Bureau of Finance. He became Vice-Governor of the export-oriented southern province in 2010.

He said he is very concerned about the Chinese workers that can be lost. “From my point of view, I would pay more attention to the influence that Sino-us trade friction to work in China. In the end, some firms will be affected, exports will decline, and production will be reduced,” he said. (Reuters)

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