Daily Management Review

US Urged By China To Exhibit Sincerity And Correct Behaviour In Trade


US Urged By China To Exhibit Sincerity And Correct Behaviour In Trade
The Chinese Commerce Ministry said on Thursday that more sincerity should be shown by the United States and thereby take corrective measures. This statement came after both the countries slapped fresh trade tariffs earlier in the week.
The US imposed fresh tariffs on $200 billion of Chinese products on Monday while the Chinese authorities retaliated by imposing tariffs on $60 billion of American products imported into China.
According to some analysts, other tactics can now be adopted by China to put pressure on the US such as by exerting pressure on American companies operating in China.
Growing pessimism over the trade dispute was expressed this week by Alibaba’s billionaire co-founder Jack Ma when he said that the trade dispute would be bad for all of the parties involved.
While announcing the latest round of tariffs, U.S. President Donald Trump had issued a threat of imposing further tariffs on Chinese goods if Beijing resorted to retaliatory measures against the US and targets the American agricultural or industrial workers.
“China has been forced to take retaliatory measures, and they are entirely meant to protect China’s own interests,” commerce ministry spokesman Gao Feng said at a weekly news briefing in Beijing.
“They are also meant to protect global free trade order, and have nothing to do with domestic politics in the United States.”
There were however no comments made by the ministry about whether fresh trade talks would be held between the two countries, calls for which had been given before the imposition of the latest round of tariffs.
Because there is realistic threat of erosion of trade flows and economic growth in both the countries, therefore concerns about job losses on both sides because of the escalating trade war between the countries, are now being expressed
“The current economic situation is indeed not good, and that could go on longer than people think,” said Jack Ma, the billionaire co-founder of Alibaba Group Holding Ltd.
“On China-U.S. frictions, people should make preparations for the next 20 years,” Ma reiterated at the World Economic Forum in the northern Chinese port city of Tianjin.
Ma had promised the creation of about one million jobs in America after his company manages to bring about a million small US businesses on to its platform to sell products ort Chinese consumers, when he had met up with Trump about two years ago.
But on Thursday, Ma said that he would not be able to meet up to that promise because of the escalating trade spat between the two countries, according to the report in the Chinese news agency Xinhua. 
“The current situation has already destroyed the original premise. There is no way to deliver the promise,” he said.
Those Chinese companies that have production units in the United States would face the challenge of higher costs fopr those products that they would ship back into China.  According to a report published in the Financial Times quoting the chief executive of the Chinese white goods firm Haier Group, Zhang Ruimin, that the company had halted its plans to ship products to China produced by General Electric’s home appliances division which it had acquired about two years ago.