Published: Thu, May 23, 2019
Markets | By Otis Pena

China seeks Asian neighbors' support in trade fight with US

China seeks Asian neighbors' support in trade fight with US

Wall Street firms have begun warning in recent days that President Donald Trump is likely to follow through on his threat to impose a 25% tariff on all remaining United States imports from China. Goldman Sachs, Nomura Holdings and JPMorgan Chase and Co. are among those that have rewritten their forecasts as Trump threatens to impose a 25% tariff on around $300 billion of additional Chinese imports. "It's an admission of irreconcilable trade and geopolitical differences with China", the analyst said.

While the industry has moved production away from China in recent years because of rising wages, shifting trade policies and a desire to make more goods at home in the United States and Europe, the Asian country remains a shoe giant.

USA lawmakers also moved Wednesday to provide about $700 million in grants to help US telecoms providers with the cost of removing Huawei equipment from their networks, and to block the use of equipment or services from Chinese telecoms firms Huawei and ZTE in next-generation 5G networks.

Perdue said China is intentionally trying to hurt farmers more because they represent Trump's political base, saying China thinks they would get a more favorable deal if Trump was out of office. The blacklisting bars Huawei from buying components for their products from any U.S. company, and it could prove to be a crippling blow for the company, which has grown exponentially over the past few years.

"Regarding the relevant United States measures, China has lodged solemn representations", Commerce Ministry spokesman Gao Feng said at a weekly briefing in Beijing.

Last week the Trump administration added Huawei to the trade blacklist, which bans the Chinese telecoms giant from acquiring technology from USA firms without government approval.

U.S. Agriculture Secretary Sonny Perdue (L) and U.S. Representative Rodney Davis of Illinois take farmers' questions at a farm in Champaign, Illinois, U.S., October 24, 2018.

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Stocks were also sharply lower across Europe, where mounting worries about Brexit, the state of UK Prime Minister's Theresa May's government and European parliamentary elections also weighed on investor confidence. He said Washington has "seriously affected the development and cooperation of global science and technology, and has also harmed the vital interests of relevant enterprises and countries".

He reiterated China's criticism of USA efforts to restrict commercial cooperation with equipment maker Huawei and other Chinese high-tech firms.

Speaking to members of the eight-nation Shanghai Cooperation Organization at a meeting in Kyrgyzstan, Chinese Foreign Minister Wang Yi vowed to match "extreme pressure" from the USA with its own measures. He said Beijing will match "extreme pressure" from the USA with its own measures.

FILE - In this Saturday, April 27, 2019, file photo, Chinese President Xi Jinping waves as he leaves after a news conference on the outskirts of Beijing.

The survey by the American Chambers of Commerce in China and Shanghai found one-third of respondents had delayed or cancelled investment decisions to cope with tariffs.

People walk by Chinese-made surveillance cameras installed along a street in Beijing, Thursday, May 23, 2019.

The trade tensions further intensified this week as the USA blacklisted Huawei and effectively halted its ability to buy American-made parts and components.

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