The world's two largest economies dove deeper into a trade war on Tuesday after Beijing added $60 billion of US products to its import tariff list in retaliation for US President Donald Trump's planned levies on $200 billion worth of Chinese goods.
No one knows how long the tariffs announced Monday might last.
And how all that plays out could determine whether Trump's negotiating gamble proves a triumph or a failure.
Beijing promised to slap tariffs on $60 billion worth of USA goods starting next week. They were among 300 tariffs lines that were removed from a preliminary list of targets for USA duties. And he thinks Chinese also have started to realize that. The list runs 194 pages.
"Contrary to views in Washington, China can - and will - dig its heels in and we are not optimistic about the prospect for a resolution in the short term", said Zarit of the American Chamber of Commerce.
Trump (@realDonaldTrump) September 18, 2018....
A senior Chinese securities market official said USA trade actions will fail as China has ample fiscal and monetary policy tools to cope with the impact.
The celebrity businessman did not, however, point the blame squarely at Trump.
Beijing has retaliated in kind, but some analysts and American businesses are concerned it could resort to other measures such as pressuring USA companies operating in China.
"We stand ready to negotiate with China anytime, if they are willing to engage in serious talks", Kudlow said at the Economic Club of NY. Trump, on the other hand, is only about halfway through his tariff opportunities.
"It's not only China that is trying to understand what the American president is trying to do", she said.
According to Xia Yeliang, a libertarian scholar and former professor of economics at Peking University, Chinese leaders will be looking to save face as they were caught off-guard by Trump's announcement. You could rebuild your whole country.
"We are disappointed that the administration seems to continue to misunderstand the complexities and reality of global trade", said Ed Black, president of the Computer & Communications Industry Association. Hence the trade deficit that so enrages Trump. Businesses can deal with costs.
Fang told the Tianjin forum that he hopes the two sides can sit down and talk, but added that the latest US move has "poisoned" the atmosphere.
But the new round of tariffs risks triggering a more alarming response by investors.
In his speech, Li talked of China's commitment to improving intellectual property rights and ensuring a level playing field for foreign companies operating in China.
China's Finance Ministry said its tariff increases are aimed at curbing "trade friction" and the "unilateralism and protectionism of the United States". Some analysts anticipate an economic partition reminiscent of the globe-splitting divide between the United States and the Soviet Union following World War II. It could also provoke further US retaliation.
But the higher-valued dollar has also diminished the value of the Turkish lira and the Argentine peso, among others. "China will create conditions for keeping the value of the yuan stable". That would mean tariffs on virtually all of the Chinese goods that the United States buys. A poll released August 24 by The Associated Press-NORC Center for Public Affairs Research found that 61 percent of Americans disapproved of the president's handling of trade negotiations. It's at least possible the midterms could break Trump's will.
But Beijing went ahead anyway and announced the new counter-tariffs. China matched them dollar for dollar with its own.