China says trade war with US will hurt global economy

ANI | Updated: Mar 11, 2018 18:45 IST

Beijing [China], Mar 11 (ANI): China has refused to indulge in a trade war with the United States on Sunday, saying that it would bring disaster to the global economy.

While addressing a press conference, Chinese Minister of Commerce Zhong Shan said, "China, which produces half the world's steel, will assess any damage caused by the U.S. move and firmly defend its legitimate rights and interests. Further, the tariffs would seriously impact the normal order of international trade," Xinhua reported.

"China doesn't want a trade war with the United States and will not start one but can handle any related challenges and will defend national and Chinese people's interests," Shan noted, adding, "Trade wars leave no winners, only disastrous outcomes for the two countries and the rest of the world."

He further pointed out that different statistical methods widen the U.S. trade deficit with China by around 20 percent, citing a research comparing the trade figures of China and U.S.

China's trade surplus with the United States grew 13 percent year on year to 1.87 trillion yuan last year, official data showed.

The further trade imbalance between the two countries is structural, with China exporting more commodities to the United States while importing more services, Zhong said, adding that trade competitiveness is determined by industries.

The U.S. control of high-tech exports to China also contributed to bilateral trade imbalance, Zhong said, quoting one U.S. research that estimated a 35-percent fall in the trade deficit with China if the United States relaxed export restrictions.

Different views on the Internet security, financial, telecom, automobile, produce and other sectors and intellectual property rights also impact bilateral trade and investment, Zhong added.

In spite of the expected trade war between two nations, "We haven't halted economic dialogues and will continue the exchanges," the minister continued.

This comes after U.S. President Donald Trump on Thursday signed a proclamation that sets the tariff on imports of steel at 25% and on aluminum at 10%, to be effected in 15 days.

In response to that, China expressed 'opposition' to the tariffs imposed by the United States on the imports of steel and aluminum, saying the move will undermine normal international trade order. (ANI)