Published: Mon, July 16, 2018
People | By Neil Grant

Trump may bring EU, China closer

Trump may bring EU, China closer

The EU - the world's biggest single market with 28 countries and 500-million people - is trying to buttress alliances in the face of protectionism unleashed by US President Donald Trump's "America First" administration. In response, the White House last week released a wide-ranging list of $200bn in Chinese goods, from tobacco to dog and cat food, to target with 10% tariffs. "Whoever says we are foes is spreading fake news", Tusk tweeted late Sunday from Beijing, without naming Trump directly. Earlier this month, the Chinese government said tit-for-tat duties on US goods took effect straight away after Washington's 25 percent tariff on $34 billion worth of Chinese goods kicked in on July 6.

Separate data suggested some Chinese retailers moved up orders to the United States to insulate themselves from the intensifying trade war that threatens to send up costs on a growing number of consumer products.

"Now that the world economy is deeply integrated, industrial chains have become globalized, and many related countries also will feel an impact".

China said on Monday that its economic growth rate had slowed slightly to 6.7 percent in the second quarter of this year, from 6.8 percent the previous quarter, and a government spokesman warned that a trade conflict threatens all the countries concerned.

The positive tone of the talks nudged up riskier currencies like the Australian and New Zealand dollars, as well as the euro, and in turn pushed the dollar index 0.2 percent lower against a basket of major currencies to 94.608.

China added that it doesn't want a trade war - but that it is not afraid of having one.

What does the summit mean for the future of EU-China relations?

He added: "Generally speaking, trade frictions unilaterally started by the United States will have an impact on the economy of both countries".

Washington last week threatened yet more measures on another $200 billion in Chinese goods.

None of the executives raised concerns about intellectual property during the portion of the meeting reporters were allowed to see.

They gave no time line and private sector analysts expressed skepticism Beijing would agree to rules that might hamper its plans to develop Chinese champions in technology and other industries. Retail spending rose 9% in June, half a percentage point higher than the month before.

"We are unable to fight equally", said Tu Xingquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing.

China's trade surplus with the USA swelled to a record in June as its overall exports grew at a solid pace, a result that could further inflame a bitter trade dispute with Washington.

In a sign Beijing is seeking alternative supplies of the commodities as it hit USA imports with extra tariffs, China had dropped import tariffs on a range of animal feed ingredients from several Asian countries. For the first half of this year, Chinese exports to the United States were 13.6% higher.

Forecasters say if the first USA round of tariffs, implemented on 6 July, is expanded to cover another $200bn of goods as Trump has threatened, China's economy could lose 0.4 percentage points, according to HSBC estimates.

Like this: