BEIJING: The escalating confrontation between Washington and Beijing inched closer to all-out trade war recently after China threatened retaliation against key US exports. The conflict, companies worry, could set back the global economic recovery.
Recently, China said it would not be bullied by the US imposing punitive taxes on its products. The US has listed 1,300 Chinese goods, worth $50 billion, on which it plans to impose hefty tariff. Beijing issued a $50 billion list of US goods, including soybeans and small aircraft, for possible tariff hikes in an escalating dispute.
China's tax agency gave no date for the 25% increase to take effect and said that will depend on what President Donald Trump does about US plans to raise duties on a similar amount of Chinese goods.
China said it was keeping atab on US exports and would start taking actions the moment Washington implemented its plan to curb Chinese exports. Beijing issued a list of 106 items of US exports that it would tax heavily if the US pressed the trigger again.
"China strongly condemns and opposes the US tariff proposals and is ready to take reciprocal measures on US products," China's Ministry of Commerce said shortly after the US announcement.