Xi: China ‘Not Afraid’ of Escalating Trade War
Chinese General Secretary Xi Jinping said that China is “not afraid” of an escalating trade war, cnn reported Friday. This was his first public address regarding the United States’ tariffs on China.
Retaliation: China announced on Friday that it would raise tariffs on goods from the U.S. to 125 percent. This was in response to U.S. President Donald Trump raising tariffs on China to 145 percent on Thursday.
China will not pay attention if the U.S. continues raising tariffs, read a statement from the nation’s Commerce Ministry on Friday, and China is committed to following through in the event of further escalation.
Allying against America: Meanwhile, Xi met with Spanish Prime Minister Pedro Sánchez in Beijing. Both leaders expressed interest in revitalizing relations between Europe and China to defend globalization and oppose “unilateral acts of bullying.”
- European Union leaders are expected to visit China in late July for talks with Xi.
- Xi embarked on a multination tour of Southeast Asia this week to shore up trade.
Dependent on the U.S.? President Trump recognizes that China’s economy is export dependent; most of its people are too poor to buy the goods they produce. But he may overestimate how much the nation relies on the U.S. market.
A decade ago, China’s leader may have “been afraid” of being locked out. But now only 14.8 percent of Chinese exports are sold in the U.S. If China can increase exports to Europe, Southeast Asia, etc (as it has in recent years), its dependency on the U.S. market will shrink further.
Learn more: The Bible prophesies economic tumult in the lead-up to a devastating global war in the end time. To learn more, read “Trade Wars Are Here.”
