China trade war: ‘China is no shrinking violet’ as tariffs cause US stock market CRASH
“CHINA is no shrinking violet” said one investment expert as China announced a huge $50 billion package of tariffs on US goods as a response to Donald Trump’s threatened trade tariffs, hitting industries hard.
China has announced a huge package of tariffs on US goods to show “it is no shrinking violet” after Donald Trump threatened to implement trade tariffs.
Marc Franklin, from Conning Asia Pacific told CNBC: “Our perception at Conning would be that the US is seeking a rebalancing of the relationship rather than trying to rip it up.
“What that means is, trying to say to China that there are some anti-competitive practices in terms of market access and procurement of technological IP as well as there is unfair support for industries and companies working in overseas market.
“The US is seeking a neutralisation of that situation without necessarily saying we’re going to be a hostile economic partner to you.
“I think in terms of where we go from here, it is just as contingent on China’s response as it is on the US’s initial actions.”
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I think China’s approach here is to say that it is no shrinking violet and it wants proportionate responses here but it has no intention of escalating the situation by itself
The products targeted include soybeans, autos, chemicals and some types of aircrafts, and the additional tariffs will be of 25 per cent, said the finance ministry said on Wednesday.
Mr Franklin said: “Our perception at Conning would be that the US is seeking a rebalancing of the relationship rather than trying to rip it up.
“What that means is, trying to say to China that there are some anti-competitive practices in terms of market access and procurement of technological IP as well as there is unfair support for industries and companies working in overseas market.
“The US is seeking a neutralisation of that situation without necessarily saying we’re going to be a hostile economic partner to you.”
The products affected by the tariffs were worth $50billion in 2017, according to a separate statement from the commerce ministry.
He added: “I think China’s statement overnight is quite interesting and the word I would focus on is ‘equal’ and I think China’s approach here is to say that it is no shrinking violet and it wants proportionate responses here but it has no intention of escalating the situation by itself.
“It serves as a warning to the US that they want constructive economic engagement and ultimately China has its own path long-term, which it has made clear.
“I think the US is trying to match that long-term ambition to say that’s fine as long as the US is not a victim from that process.”