China Trade Talks Come to Halt

Chairman Xi speaks at the National People’s Congress in Beijing

Chairman Xi speaks at the National People’s Congress in Beijing

"The trade dispute between China and the U.S.is a big deal, and to the extent that it goes to a full scale war that potentially is recessionary basically for the global economy so we have to be careful here", Tal said.

Turning the situation on its head, Lighthizer said that China's retaliation against the imposition of USA tariffs last Friday was "without any worldwide legal basis or justification".

"China stands in line with the global community on the correct side of history to together protect the rules of the multilateral trade order", foreign ministry spokeswoman Hua said on Wednesday.

The Office of the U.S. Trade Representative proposed 10 percent tariffs on Tuesday on a list of 6,031 Chinese product lines ranging from burglar alarms to mackerel. The top items by value were furniture at $29 billion of imports in 2017, network routers worth $23 billion a year ago and computer components to the value of $20 billion.

Some lawmakers, frustrated by having to stand by as Trump imposes measures they see as harmful and protectionist, have begun to explore ways to rein in the president's authority to unilaterally impose tariffs.

Senate Finance Committee Chairman Orrin Hatch said the announcement "appears reckless and is not a targeted approach".

Scott Lincicome, a trade lawyer for the group Republicans Fighting Tariffs, said tariffs on $200 billion would amount to a "multibillion-dollar tax on American businesses and families" and prompt China to retaliate against American exporters.

The US Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but does not back Trump's aggressive tariff policies.

"I love what the president has done in most cases, but the tariff is basically a tax on people who use aluminum", Pete Coors told CNN.

Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details but said, "We will take firm and forceful measures".

Connelly called the United States and China strategy of "placing unwarranted tariffs" on seafood products "misguided", and warned that it will "only hurt workers and consumers in their own countries".

The Chinese Commerce Ministry declared it was "shocked" by the United States actions, which were "hurting China, hurting the entire world and hurting the U.S. itself".

With US-China trade tensions continuing to rise, nearly every major asset has tumbled - including the Australian dollar, gold, oil, base metals and global stocks.

The new list of goods to face 10 percent punitive duties includes frozen meats, live and fresh fish and seafood, butter, onions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tires, leather, fabrics, wood and papers.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose US farmers and manufacturers to retaliation overseas.

FILE PHOTO: Workers ride on an motor rickshaw through an aluminium ingots depot in Wuxi, Jiangsu province in this September 26, 2012 file picture.

The total US debt is over 18 trillion euros. Exports probably grew a healthy 9.5% from a year earlier in June, before the two nations started to levy an additional 25% tariff on more than $30 billion in goods.

China imports far less from the U.S. than the USA imports from China. Hong Kong's Hang Seng lost more than 1 per cent, as did Japan's Nikkei as the yen received something of a safety bid.

At 11.30 pm IST, the Dow Jones Industrial Average was down 141.78 points, or 0.57 per cent, at 24,777.88, while the S&P 500 was down 11.70 points, or 0.42 per cent, at 2,782.14.

U.S. Trade Representative Robert Lighthizer said Washington did a thorough investigation to justify imposing tariffs on $50 billion worth of imports to compensate for the harm to the U.S. economy caused by China's unfair trading practices, including theft or forced transfer of American technology.

Propaganda authorities have also issued unusually strict rules limiting local media coverage of the trade war because of worries that unrestrained reporting could set off panic and roil its already jittery financial markets, sources within Chinese state media have said.

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