China is not afraid of “extreme-measures” the United States is taking in their trade war and will use it as an opportunity to replace imports, promote localisation and development of high-tech-products.
The State media said on Wednesday in a publication by the ruling Communist Party.
The two economies escalate a trade war on Tuesday after Beijing added 60 billion dollars of U.S. products to its import tariff list in retaliation for U.S. President Donald Trump’s planned levies on 200 billion dollars worth of Chinese goods.
“To deal with the trade war, what China really should do is to focus on doing its own thing well,” the People’s Daily said.
“(China) is not worried that the U.S. trade counter measures will raise domestic commodity prices by too much.
”However, she will instead use it as an opportunity to replace imports, promote localisation or develop export-oriented advanced manufacturing,” it said.
The Global Times tabloid, which is affiliated to the People’s Daily, said the trade war was a chance to pursue greater global recognition of its financial markets.
China realised it could open its A-share market more to listings by Western firms.
The United States has so far imposed tariffs on 50 billion worth dollars of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.
The new tariffs will begin on Sept. 24 and will increase to 25 percent by the end of 2018.
Beijing has retaliated in kind but some analysts and American businesses are concerned it could resort to other measures, such as pressuring U.S. companies operating in China.
Another Chinese state-owned newspaper, the China Daily, also said in an editorial on Wednesday the U.S. tactics would prove to be ineffective.
“China has always managed to find the proper solutions to put its economy back on track,” the China Daily said.
“The trade conflict will not force China to succumb to US pressure. Instead, given its economic resilience, it will squarely face those challenges, find the right solutions, and emerge stronger,” it said.
China has to take countermeasures to “safeguard the country’s legitimate interests and the global free trade order”, the Ministry of Commerce said, adding that the US move brings new uncertainties to bilateral negotiations.
China urged the US to recognize the negative consequences of its actions and redress its behavior in a timely manner, the ministry said.
Geng Shuang, a foreign ministry spokesman, said talks on an equal footing are the only correct way to resolve trade issues, and “insincerity” is unacceptable.
China and the US have raised tariffs on $50 billion worth of each other’s products since July as their trade tensions escalated over the past few months.
Wei Jianguo, a former vice-minister of commerce, said the two countries need to resume discussions as soon as possible to reduce losses for both sides and safeguard global trade order.
William Zarit, chairman of the American Chamber of Commerce in China, said, “The best way forward is an imminent return to results-oriented negotiations.”
Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, said the latest US tariff actions will have a negative effect on the Chinese economy, reducing its GDP growth by about 0.7 percentage point.
But he said that “with ample room to maneuver fiscal and monetary policies, the Chinese economy is expected to remain stable”.