According to China Daily in an editorial on Thursday, China warns the U.S. not to mess with China on Trading Fronts. China says if the Pandora’s box is opened the world would see the trade ills.
China’s growing trade influence on the world create fears among Western powers and especially the United States of America, it was reported that China will become Top Patent filer in just 3 years according to UN report.
Last week, President Donald Trump Slapped China with $60 billion in tariffs on some Chinese imports, China said it could retaliate in a similar manner which could impose $3 billion on U.S imports. China imports from the U.S. mainly consist of Autos, Aircraft and related material, soybeans and some others worth total of $40 billion which was recorded last year.
According to a commerce ministry spokesperson in China, “The ill practice by the United States might open a Pandora’s box which could create chain reactions across the world in the name of trade protectionism.”
According to Financial Times on Monday, China is offering to buy more U.S. micro-chips and moving quickly to finalize rules allowing foreign firms to take majority stakes in Chinese securities firms, citing people briefed on the negotiations.
Considering the market dependency, Chinese customs data show that the U.S. had a total share of $2.6 billion or 1 percent of China’s total semiconductor imports, suppliers in South Korea, Japan, Taiwan have bigger share that the United States. However, U.S. semiconductor industry says that U.S. companies have slightly more than 50% market in China.
This shows that U.S. is heavily dependent on China for its chips exports while China only imports around 1 percent from the US. According to the source, the U.S. semiconductor industry has not requested Trump to ask China to buy more chips from the U.S. The source also said, “We don’t need China to buy more chips” U.S. industry is concerned about being targeted by Chinese non-tariff barriers.
Referring to the Chinese retaliation the source said, it is more about IP protection, cyber rules, and Chinese subsidies. China has been a keen interest to import from the U.S. including high-tech and high-end products but the U.S. is confused and has been stymied U.S. export controls referring national security.
Chinese commerce industry warned the U.S. on Thursday that this approach to trade might create a domino effect, U.S trade protectionism would only hurt U.S. consumers. China is ready to resolve the conflict through dialogue and would take all possible steps to protect its interests, said Gao Feng, ministry spokesperson.
But the negotiations must be based on equality, China will not accept anything under unilateral coercion, he added.