PEKING / WASHINGTON (Reuters) – China warned Friday it would "strike back" at any cost with new trade measures if the United States continues on its protectionist path hours after President Donald Trump threatens to pay another $ 100 billion in tariffs on Chinese goods.
China's "unfair retaliatory measures" against previous US dealings have boosted Trump on Thursday by ordering US officials to identify additional tariffs and to escalate a high-stakes confrontation with potentially damaging consequences for the two economies.
On Wednesday, China unveiled a list of 106 US goods – from soybeans and whiskey to frozen beef and aircraft ̵
Washington has demanded the additional $ 50 billion after it said that a study of Chinese government policy would transfer US intellectual property to Chinese companies and allow them to take the lead in key high-tech industries of the future.
In response to Trump's recent comments, the Chinese Ministry of Commerce repeated that China was not afraid of a trade war, even though it was not seeking it, and accused the United States of provoking the conflict.
"If the United States ignores the objections of China and the international community and insists on unilateralism and trade protection, the Chinese side will go to the end at all costs and fight back," a spokesman was quoted as saying in a statement the website of the Ministry is called.
The Ministry has called for a press conference on Friday night in an unusual move on a public holiday.
Earlier in the day, Chinese state media had denounced Trump's threat of more dealings as "ridiculous."
"This latest intimidation reflects the deep arrogance of some American elites in their attitude towards China," the state Global Times said in an editorial.
While Beijing's claim that Washington is the aggressor and drives global protectionism, China's trading partners for years have been complaining that it abuses the rules of the World Trade Organization and spread unfair domestic policies that nourish foreign companies from some sectors as domestic champions ,
China has repeatedly sworn that it would open sectors such as financial services.
President Xi Jinping will announce new reform measures next week and announce his country's opening in the high-level Boao Forum in the southern island province of Hainan.
While China has projected a picture of multilateralism and restraint in the growing trade dispute with the United States, Beijing has responded quickly to Washington's rhetoric and actions.
So far, US information technology products, from cell phones to personal computers, have largely escaped Beijing's anger, as well as telecommunications equipment and aircraft larger than the equivalent of a Boeing 737.
Among the war most affected by a trade be the US technology sector, especially chipmakers. The US semiconductor sector relies on China for about a quarter of its sales.
It also remains to be seen whether the trade dispute would trigger nationalist scope. As the Beijing-Seoul connections cooled, Chinese tourism plunged into South Korea and Made-in-South Korea products were shunned by consumers in China.
In the Chinese social media on Friday, among the most wanted phrases, "China has not grown anxious" and "China is being brought to the end".
Oxford Economics analysts warn that a full-scale trade war will have harmful consequences.
"It is important that these threatened tariffs are negotiated and therefore should not be considered final," wrote the analysts in a message to the customer.
"A (full) trade war would have had a stronger impact now, with the US and China suffering a significant slowdown in real GDP growth – a cumulative loss of around 1.0 percentage point" and global economic growth of 3.0 per cent Reduce Oxford base scenario to 2.5 percent in 2019.
The escalating "tit-for-tat" measures between the two economic superpowers shook global financial markets as investors worried about the impact on global trade and growth and stocks, the dollar and a number of riskier assets such as Copper and gold hit fishing grounds like the Japanese yen and gold.
The dollar fell in trading on Friday, while US equity futures and most of Asia's stock markets were in the red.
"This is a trade war we have already warned about," said Matthew Shay, President and CEO of the National Retail Federation.
"We are in a dangerous downward spiral and the American families will end up losing," Shay added in a statement, urging Trump "to stop playing a chicken the US economy. "
Reporting by Tom Daly and Min Zhang in BEIJING and Steve Holland and David Lawder in WASHINGTON; Additional letter from Ryan Woo; Editorial of Shri Navaratnam