stayontheblack.com

Business

US Using False Accusations On Trade To "Intimidate" Countries: China

China flag US flag

That coincided with the time for President Donald Trump's planned tariff hike on $200 billion of Chinese imports to take effect, though there was no immediate USA government confirmation it was collecting the higher charges.

A report published Monday by the Chinese government accused the United States of abandoning fundamental norms of global relations.

Rob Carnell, ING's chief Asia economist, said in a note to clients that in the absence of any incentives Beijing would likely hold off on any further negotiations for now.

Beijing fired back Monday, accusing the United States of making "false accusations" and using "increasing tariffs and other means of economic intimidation in an attempt to force its own interests on China by way of extreme pressure".

China, which has accused Washington of being insincere in the negotiations, has decided not to send Vice Premier Liu He to Washington this week, The Wall Street Journal reported late last week.

Efforts at diplomacy have failed, with no breakthroughs since high-level talks began in May. Earlier, he threatened Beijing with further tariffs on around $267 billion of imports if Beijing retaliates against the latest measure.

The effort crumbled a week after Trump tweeted the White House felt "no pressure" to resolve the dispute with China.

"President Trump has an excellent relationship with President Xi and our teams have been in frequent communication since President Trump took office", Ms Walters said.

After accusing the USA of launching the "largest trade war in economic history", analysts worry Beijing could shift to threatened "qualitative" retaliatory measures, such as damaging United States firms in China or restricting the export of crucial items. "We remain open to continuing discussions with China, but China must meaningfully engage on the unfair trading practices".

Markets reacted negatively to the most recent developments in the tit-for-tat trade dispute with the United States and China.

Companies complain that the time frame between the announcement of the latest levies and implementation of the tariffs on thousands of products is too short.

The resulting tariffs have lead to the USA stock indexes falling today, as industrial and technology sectors shares face the brunt of the trade war. "This latest tranche is a tsunami", said Hun Quach, vice-president of global trade for the Retail Industry Leaders Association.

China targeted 5,200 U.S. goods with five to 10 percent tariffs, including big ticket items such as liquefied natural gas, lumber and electronics, as well as peppermint oil, pig hides and condoms.

McDonald's No.2 market is China, Starbucks has 34 locations in China, wanting to go to 7,000. This, in turn, has caused "serious damage" to trade relations between the world's two largest economies.

Trump earlier this month accused China of targeting rural voters who support his presidency by hitting agricultural goods.