Pompeo confident USA will win China trade war


USA regulators went ahead with a planned 10 per cent tax on a $200 billion list of 5,745 Chinese imports including bicycles and furniture.

Beijing's retaliatory tariffs on $60 billion in American goods were set to go into effect soon after the U.S. action, the finance ministry announced last week.

A report published Monday by the Chinese government accused the United States of abandoning fundamental norms of global relations.

Earlier this month, President Donald Trump threatened more tariffs on Chinese goods - another $267 billion worth of duties that would cover virtually all the goods China imports to the United States.

China, which has accused Washington of being insincere in the negotiations, has decided not to send Vice Premier Liu He to Washington this week, The Wall Street Journal reported late last week. The Chinese government had given no public indication whether it would accept the invitation.

Previous talks in late August saw little progress.

Fitch, one of the "Big Three" ratings agencies along with Moody's and Standard and Poor's, was even more candid after cutting global growth estimates. But he said that Trump's lack of a clear goal for the trade war - outside of vague assertions about the trade deficit - raises the likelihood that the negotiations could be fruitless.

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About $50 billion in tariffs have already been applied, potentially disrupting global supply chains, since the United States' first round of tariffs were imposed in July. He has accused the country of stealing intellectual property from American businesses, among other trade infractions. To the contrary, Trump has claimed that his tariffs are meant to protect and support American industry. That comes just weeks after tech giant Apple unveiled its new product line, which includes an updated smartwatch that has drummed up consumer interest.

Chinese regulators have tried to cushion the blow on their own economy by targeting American goods such as soybeans, natural gas, fruit, whisky and automobiles that are available from Europe, Latin America and other Asian countries.

Even before Trump's election, the United States has complained vigorously that China has been unfair to U.S. businesses and has stolen technology by forcing firms to reveal secrets as a condition to operate in the fast-growing Asian economy.

The toughly worded report said Beijing wants a "reasonable solution" but gave no indication of possible concessions.

After accusing the U.S. of launching the "largest trade war in economic history", analysts worry Beijing could shift to threatened "qualitative" retaliatory measures, such as damaging United States firms in China or restricting the export of crucial items to the US.

Additionally, the latest Assocham-World Gold Council report states that the higher minimum support price offered to farmers (which will increase their purchasing power) could push the gold prices in India by 25 percent in the second half of the financial year 2018-19.