China says 'bully' United States started a trade war

Saul Bowman
July 15, 2018

Wang said he had been under the impression that four rounds of high level talks in recent months between China and the United States had averted the trade war. China's trade surplus with the U.S. over the same period was $133.76 billion, up from $117.51 billion a year ago.

This is the highest surplus in any month since 1999.

Asked if China was breaking WTO rules by imposing retaliatory tariffs on U.S. goods without first launching a formal legal dispute, Wang said China could not wait years for a ruling on the USA move and had acted "in line with the spirit of worldwide law".

Last week, the United States and China introduced tariffs of 25 percent on $34 billion of each other's exports. That leaves about $80 billion for penalty tariffs after Beijing's previous increases either imposed or threatened on a total of $50 billion of US goods are counted.

China's June exports rose 11.3 percent from a year earlier, beating forecasts for a 10 percent increase according to the latest Reuters poll of 39 analysts, and down from a 12.6 percent gain in May.

"Looking ahead, export growth will cool in the coming months as United States tariffs start to bite alongside a broader softening in global demand", Julian Evans-Pritchard, Senior China Economist at Capital Economics in Singapore wrote in a note, though he noted a weaker yuan should help offset some of the decline.

"We understand internally that Chinese authorities have issued instructions that EU-approved Indian suppliers should be granted the industrial drug licence in an expeditious manner so they can enter the Chinese market within six months", Dua said.


China's June trade grew by double digits amid mounting tensions with Washington but Beijing warned its exporters to face "rising instabilities and uncertainties". "They are just a trade bully", he told reporters in Geneva.

However, a lower yuan would make it more expensive for China to import USA goods.

The news came as the two economic superpowers stand on the brink of an all-out trade war that would have a huge negative impact globally.

Amy Zhuang has warned that there could be knock-on effects if the USA proceeds with its proposal for a new round of tariffs on $200bn of Chinese goods.

Imports grew 14.1 percent in June, customs said, missing analysts' forecast of a 20.8 percent growth, and compared with a 26 percent rise in May.

While China continues to benefit from strong global demand for its goods for now, the rising trade tensions with the USA has the potential to hurt both sides.

China imported American goods worth $13.6 billion in June while exporting $42.6 billion to the United States.

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