Published: Mon, March 12, 2018
Global Media | By Derrick Guzman

China Minister Says Trade War Would Bring 'Disaster' to World

China Minister Says Trade War Would Bring 'Disaster' to World

A trade war between China and the United States would bring disaster to the global economy, Chinese Commerce Minister Zhong Shan has warned.

Canada, Mexico and Australia have secured exemptions from the tariffs of 25 percent on imported steel and 10 percent on aluminum announced by Trump, though Canada's and Mexico's were conditioned on progress renegotiating the North American Free Trade Agreement.

"Imported cars mainly target the country's high-end luxury consumers, and actually have little overlap with the broader passenger vehicle market, which is dominated by domestic automakers and foreign joint ventures", said Wang Cun, an industry analyst with the China Automobile Dealers Association.

"There is no victor in a trade war", Zhong said at a news conference in Beijing last Sunday. "But we can handle any challenges and are determined to protect the interests of our country and its people". He said that would only bring disaster to China and the United States and the rest of the world.

"Nobody wants to fight a trade war, and everyone knows fighting one harms others and does not benefit oneself".

China's metals industry issued the country's most explicit threat yet in the row, urging on Friday for the government to retaliate by targeting USA coal - a sector that is central to Trump's political base and his election pledge to restore American industries and blue-collar jobs.

The US administration asked China for a plan to cut the annual US trade deficit with the nation by $100 billion, a White House official said last Friday.

The U.S. reported a $375 billion deficit with China past year, so a 20 percent reduction would still be among the largest trade gaps that it has with any country.

The Trump administration earlier approved higher tariffs on Chinese-made washing machines, solar modules and some other goods, prompting Beijing to accuse Washington of disrupting global trade regulation by taking action under US law instead of through the World Trade Organization.

He noted that China's top economic adviser Liu He visited the U.S. recently and held "candid and constructive" talks with American officials on bilateral trade issues.

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