China ready to counterattack as it adapts to US tariffs – The Global Times

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  • Beijing is unlikely to use its US Treasury holdings as a weapon.
  • China, now basking in an impressive 6.3 percent economic GDP growth rate in the first half of 2019.

The Global Times has reported that the tit-for-tat trade conflict between the US and China of a magnitude and endurance the world has rarely witnessed before has entered a stalemate or seesaw phase. 

Key points from the article:

  • Both Beijing and Washington are seen entrenching deeper, refusing to yield any ground. 
  • The months-long tussle, ignited by the US government in its desperate desire to impede and hold back China’s growth, is actually a stress test for China’s policymaking apparatus to steer the second-largest economy down a path of ad hoc responses, adaptation, regaining resilience and finally, counterattacks. 
  • Lately US President Donald Trump renewed his gambit by threatening to levy more tariffs on $325 billion worth of Chinese goods.
  • hardly any Chinese economists or ordinary residents were unnerved or even agitated by the news.
  • Many openly displayed contempt and some called it a bluff by the White House. 
  • China’s economy retains growth rates of more than 6 percent despite 25 percent tariffs on $250 billion Chinese imports.
  • Where will US shopping malls and e-retailers replenish if $325 billion in Chinese daily necessities are stopped by the Trump administration?
  • Some observers warn that if Trump blocks Chinese clothes, there might be a real danger that Americans may walk the street naked.
  • The Wall Street would certainly not clamor for that kind of market chaos. 
  • In the eyes of many Chinese, the Trump administration looks increasingly like a bigoted bully .
  • All that US President Donald Trump craves is not to be seen as weak or caving into China or Russia or India or the EU.
  • However, China, now basking in an impressive 6.3 percent economic GDP growth rate in the first half of 2019, is firming up its bastion, ready to fight a prolonged trade war of attrition.
  • Beijing aspires to set an exemplary role for other sovereign states to say “no” to a tariff-wielding bully. 
  • By connecting the dots, one can find the trajectory of China’s policymakers, who are becoming more steadfast and determined to launch counterattacks.
  • What they want to attain is simply to combat trade protectionism and economic imperialism, and uphold global equality and justice. 
  • Relying on boisterous domestic consumption which rose 9.8 percent in June, China is now a lucrative market for all economies including the US.
  • China’s government is expected to promulgate clear-cut rules on placing rogue American companies on its non-reliable entity list. 
  • US businesses that toe the Trump administration’s order and harm Chinese high-tech firms such as Huawei, or are found selling arms to China’s Taiwan, will be sanctioned. 
  • No US companies that are hurting China’s core interests – territorial integrity or technology competitiveness – will escape unscathed. 
  • Beijing has time and again warned that if the Trump government stubbornly raises tariffs and escalates the trade war, it will cut off rare-earth mineral supplies to the US. 
  • China’s holdings of US Treasury bonds have declined for three consecutive months from March to May, according to media reports.
  • Beijing is unlikely to use its US Treasury holdings as a weapon, but it is a subtle warning that China will no longer purchase the papers, a tactic forcing the White House to think things over before escalating the trade fight. 
     
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