One of China’s top tabloids issued a stern warning to the U.S. on Monday that Beijing is prepared for a prolonged trade battle with President Trump.
In an column directed at top White House economic adviser Larry Kudlow, the Global Times editorial board argued that the communist nation would eventually emerge victorious despite short-term pain.
“China is bidding farewell to an era of growth heavily dependent on exports,” the paper said. “In future, the U.S. economy will depend more on the Chinese market than the other way around, and that is a tendency about which all American elites are aware, including Mr. Kudlow.”
Beijing announced retaliatory duties on $60 billion of U.S. imports on Friday, after Trump asked the U.S. trade representative to consider raising a proposed tariff on $200 billion in Chinese imports to 25 percent from 10 percent. The White House has already imposed 25 percent levies on $34 billion worth of Chinese goods, and Trump has threatened charges on a total of $500 billion in goods from the country.
“We have been very clear about the specific changes China should undertake,” U.S. Trade Representative Robert Lighthizer said in a statement. “Regrettably, instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers and businesses.”
Many U.S. companies are responding to Trump’s broadening trade disputes with allies and competitors alike by raising prices, which will pinch consumer budgets. Lawmakers and economists agree the president risks undermining the benefit’s of last year’s tax cuts, but he has largely dismissed their concerns.
[Opinion: In trade war, there are smart weapons, and then there are tariffs]
..Because of Tariffs we will be able to start paying down large amounts of the $21 Trillion in debt that has been accumulated, much by the Obama Administration, while at the same time reducing taxes for our people. At minimum, we will make much better Trade Deals for our country!
— Donald J. Trump (@realDonaldTrump) August 5, 2018
China, meanwhile, “has to defend its right to development, and we don’t fear sacrificing short-term interests,” the Global Times wrote. “China has time to fight to the end. Time will prove that the U.S. eventually makes a fool of itself.”
The Global Times said the Asian nation remains “key to the survival” of U.S. businesses and farmers and labeled the Trump administration’s trade agenda an effort to “crush China’s economic sovereignty.”
