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China reacts to Trump's steel tariffs

China reacts to Trump's steel tariffs

A trade war between China and the United States would bring disaster to the global economy, Chinese Commerce Minister Zhong Shan has warned. He said that would only bring disaster to China and the United States and the rest of the world.

"There will be no victor", Commerce Minister Zhong Shan told a press conference on the sidelines of the ongoing session of the National People's Congress.

Mr Zhong said an expert panel tasked with conducting a comparative study of differences in trade statistics between the two countries repeatedly found that the US' trade deficit with China was overestimated by about 20 per cent each year. He temporarily exempted Mexico and Canada from the tariffs.

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

Chinese leaders have threatened in the past to retaliate against raised trade barriers, but have yet to take direct action following Trump's announcement.

He cited American government research that he said showed the figure for the surplus in China's favour overstated by roughly 20% and said that if the United States dropped restrictions on high tech exports to China it would further reduce the surplus by 35%.

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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.

US officials have said such sales would make up only a few percent of the deficit while possibly threatening American national security.

But China will not start a trade war and it will continue talks with the USA, he said at a press briefing on the sidelines of the ongoing annual parliamentary session.

China absorbed $136.3 billion in foreign investment previous year. Surveys by business groups show companies are shifting emphasis to other Asian economies seen as more profitable or less restrictive.

Trump "clarity" on tariff not what EU was looking for Hours after European Union (EU) trade chief Cecilia Malmstrom said she had "no immediate clarity" on whether the bloc will be let off the hook from planned United States tariffs, Trump laid down his conditions and repeated a threat if they're not met.

The commerce minister reiterated Premier Li Keqiang's promise last week to liberalize the manufacturing industry and expand the opening up of sectors such as medical care, education and new energy vehicles.