Chinese media denounces Trump trade moves as Beijing touts sincerity

Equities declined in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S

Equities declined in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S

But Asia's other trade-reliant economies and companies plugged into China's supply chains are anxious they will suffer collateral damage if world trade slows down, hurting global growth and dampening business confidence.

In a statement, Trump said he had asked the US trade representative to identify the Chinese products to be subject to the new tariffs.

On Friday, after the Trump administration's first tariff action, Beijing responded with reciprocal tariffs on $50 billion in USA goods, including cars, soybeans, dairy, oil, propane and other high-value trade categories.

Stock markets rose Wednesday as investors rallied around signs that the global economy was on track despite heated exchanges between the world's two largest economies over trade. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", he said.

The world's most valuable publicly traded company does almost all of its manufacturing and assembly in China, the culmination of a long and complicated electronics supply chain that stretches around the world and ends with the Chinese-made iPhone you may be reading this story on.

President Donald Trump pumps his fist as he leaves a meeting Monday in the East Room of the White House in Washington.

Investor concerns surrounding the implications of confrontation between China and the USA returned just as the Federal Reserve this month signaled a faster pace of policy tightening and the European Central Bank said it will maintain it key rate until the second half of next year.

"The bottom line is that trade wars are akin to zero-sum games or mutually assured destruction", cautioned Sean Darby, chief global equity strategist at Jefferies.

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Chinese regulators also are considering a tariff hike on an additional 114 products including medical equipment and energy products, the Finance Ministry said.

Late Monday, Trump also announced he might pursue $200 billion (150.75 billion pounds) more in tariffs on Chinese goods, though it was unclear whether the list would include more chips or computing products that might impact Intel.

Surprisingly soft activity data for May showed China's economy is finally starting to cool under the weight of a multi-year crackdown on riskier lending that is pushing up borrowing costs for companies and consumers. Other companies say the approval process for licenses has slowed down.

"Beijing will have to ensure that Washington is aware that there will be heavy price to pay every action it strikes against China if it is to avoid being a victim of the Trump administration's growing blood lust".

That gives the country power to impose penalties such as customs delays, tax audits and increased regulatory scrutiny if Trump delivers on his threat of bigger duties on Chinese trade.

Companies also are watching the fate of ZTE Corp. "For many American families, these increased costs will wipe out any gains from tax reform", said Hun Quach, vice president of global trade for RILA. Observers fear the next stage would be for the USA to restrict Chinese investment into the US.

Spooked by worsening tensions over trade between the world's two largest economies, investors are selling stocks and commodities and buying safer assets. American officials said they would suspend threatened tariff increases on up to $150 billion of Chinese goods.

These tariffs are not set to come into effect until July 1, as consultation on the final list ended late last week. The Chinese government warned after another round of talks June 3 that it would discard those deals if the tariffs went ahead.

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