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    China Is Not Afraid Of Trade Wars, But Hopes To Avoid Trade Wars.

    2017/3/22 21:54:00 42

    ChinaTrade WarForeign Trade

    EU and Japanese leaders promised to speed up the negotiation process and sign a trade agreement this year to balance trade protectionism in the US and boost exports to boost economic growth.

    Japanese Prime Minister Abe Shinzo (Shinzo Abe) met with European Council president Tusk (Donald Tusk) and European Commission Chairman Juncker (Jean-Claude Juncker) on Tuesday in Brussels, promising to deepen economic, political and security ties and jointly tackle global challenges.

    The three leaders said that when protectionism is intensifying, the free trade agreement they hope to reach will set up a banner for global business.

    They did not mention Donald Trump, but Trump's criticism of the multilateral agreement has made us trading partners uneasy.

    Juncker said that all parties agreed to achieve freedom.

    trade agreement

    It is necessary, because all parties believe in free, fair and rule-based trade and continue to face the world instead of isolationism.

    Speaking at a joint news conference with Juncker and Tusk, Abe Shinzo said that as trade protectionism continued to strengthen, he believed that Japan's cooperation with the European Union and the United States was very important. We should show the world the banner of free trade and set an example.

    European Union's dissatisfaction: a deep freeze on trade talks with the US

    Trump Malmstrom, chief trade officer of the European Union (EU), said on Monday (March 21st) that the government of the Trump administration is "disturbing" on trade. She believes that the threat of Global trade barriers will reduce employment and increase consumer prices in developed and emerging economies.

    In a speech at University of Toronto, Cecilia Malmstrom said that the EU has sought to strengthen trade relations with its partners, such as Canada, which concluded a trade agreement last autumn.

    On the contrary, Malmstrom said the free trade talks between the European Union and the United States were in a "deep freeze" because the Trump administration needed bilateral agreements but opposed multilateral or regional agreements.

    She also said that the EU will continue to seek global trade, and even Britain, which is about to leave Europe.

    She believes the move will create demand for a new trade agreement between the EU and the UK.

    "We do not think that trade barriers will be increased," Malmstrom said at the Monck School of global affairs at University of Toronto.

    Europe has long defined itself by diversity, and we are well aware of the impact of diversity on freedom and prosperity.

    We know that breaking away from globalization is not a good choice, which will reduce employment rather than create employment. "

      

    China

    Attitude: developing contingency plans to prepare for us trade problems

    China has already consulted think tanks and policy advisers on how to deal with the possible trade penalties imposed by the Trump administration. Although China hopes to solve problems through businesslike consultations, it also prepares for the worst.

    China's policy advisers believe that the Trump administration is likely to impose high tariffs on steel, furniture and state-owned enterprises, as China enjoys huge trade surpluses in the US.

    They say that China may respond to other agricultural products or machinery and manufactures suppliers, and reduce consumer products exported to the United States, such as mobile phones or laptops.

    They say other options include tax imposing restrictions or restrictions on big companies operating in China, or restricting access to China's rapidly growing service sector.

    Several sources who participated in the discussions said that Beijing was a target specially targeted by Trump in last year's campaign pledge. Considering the huge trade surplus of China to the United States, officials expect that there will be some friction between the two countries.

    The Information Office of the State Council and the Chinese Ministry of commerce did not respond to requests for comment.

    "The two sides still have room for cooperation and negotiation to solve the problem, rather than resort to retaliatory measures only," a policy adviser who asked for anonymity said.

    "However, we should prepare our plan to prevent things from deteriorating."

    US Secretary of state Tillerson visited China on the weekend and did not announce it.

    U.S.A

    Major measures have not made public statements about Washington's plans for trade.

    The finance ministers of the group of 20 and the president of the central bank abandoned their commitment to protect global trade freedom and openness after the two day meeting of Baden Baden, Germany, which acquiesced in the rising protectionism of the United States.

    Bona fide gesture

    These sources said that China will increase imports from the United States and invest more in the us to create more jobs to show friendliness, but will not accept any unilateral actions of the United States in an adamant way.

    "We will develop contingency plans to deal with Trump's worst policy," the second policy advisers said.

    Trump had previously threatened to impose 45% tariffs on Chinese exports, and has often declared China as a currency manipulator during the campaign, despite the fact that the Chinese authorities have not actively suppressed the renminbi in recent years.

    He has promised to analyze China's exchange rate system in a more systematic way.

    The US Treasury uses three criteria to determine whether a country manipulates its exchange rate to gain trade advantage. China is only one of them: the trade surplus with the United States has continued to exceed US $20 billion.

    The US Treasury's next report on currency manipulation will be announced in April.

    The Commerce Department said last Tuesday that China's trade surplus with the United States in 2016 dropped by 20 billion 100 million US dollars to US $347 billion, while China's official data showed a lower US surplus.

    One source said he thought Trump would not be able to label China with a currency manipulation label.

    "If he does that, China will let the yuan go, and the renminbi will depreciate sharply," the source said.

    According to sources, only when trade relations deteriorate sharply can China consider devaluing or selling some US Treasury bonds.

    Earlier this month, China's former commerce minister Gao Hucheng said during the "two sessions" that China is not afraid to fight trade wars, but hopes to avoid trade wars.

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