BEIJING (Reuters) – China does not want a trade war with the US but will defend its interests, a senior Chinese diplomat said on Sunday, after US President Donald Trump announced a plan to put tariffs on steel and aluminium imports.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Trump struck a defiant tone on Friday, saying trade wars were good and easy to win, a day after he said he intended to put duties of 25 percent on steel imports and 10 percent on aluminium products.
Trade tensions between the world’s two largest economies have risen since Mr Trump took office in 2017, and although China only accounts for a small fraction of US steel imports, its massive industry expansion has helped produce a global glut of steel that has driven down prices.
Negotiations and mutual opening of markets were the best ways to resolve trade frictions, Chinese Vice Foreign Minister Zhang Yesui said at a briefing ahead of China’s annual session of parliament, which opens this week.
“China does not want to fight a trade war with the United States, but we absolutely will not sit by and watch as China’s interests are damaged,” Mr Zhang, who is a spokesman for parliament and was formerly an ambassador to the US, said.
“If policies are made on the basis of mistaken judgements or assumptions, it will damage bilateral relations and bring about consequences that neither country wants to see,” he said.
Mr Trump believes the tariffs will safeguard American jobs, but many economists say the impact of price increases for users of steel and aluminium, such as the auto and oil industries, will destroy more jobs than curbs on imports create.
Nonetheless, there is growing bipartisan consensus in Washington, and support within the US business community, for the US government to counter what are seen as Beijing’s predatory industrial policies and market restrictions on foreign firms.