Trade tensions escalate as China accuses Washington of bullying

"For the U.S.to go to war with China over trade is for the U.S.to enter a war that it can not win".

Chinese news agency Xinhua reported the U.S. were using "trade bullyism practices" and "intimidating other countries through economic measures" which are hurting the global economy, according to a white paper published by China's State Council.

A report published Monday by the Chinese government accused the United States of abandoning fundamental norms of worldwide relations.

"While these actions seem to be already priced in, investors are becoming increasingly anxious that the trade war may enter phase III", Hussein Sayed, the chief market strategist at trading platform FXTM, said in an email on Monday morning.

It added that China has responded to the US' tariffs by seeking common interests of not just both parties but also the global trade order, and has answered the US' concerns with the "greatest level of patience and good faith".

The four-page section in Sunday's Des Moines Register, which carried the label "paid for and prepared exclusively by China Daily, an official publication of the People's Republic of China", featured such articles as one outlining how the trade dispute is forcing Chinese importers to turn to South America instead of the USA for soybeans.

A broad swath of products are on the hit list, including billions in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and banknote dispensers - instantly making widely used goods more expensive. There's a growing consensus in Beijing that substantive talks will only be possible after U.S. mid-term elections in November, the people said.

Still, the U.S. remains open to talks, Lindsay Walters, deputy White House press secretary, said. China has promised to respond with tariffs on $60 billion worth of United States imports.

Secretary of State Mike Pompeo seemed confident on Sunday, however, that the USA would win any potential trade war with China. Another US$16 billion of goods were included in August and China retaliated in kind to both moves.

"The US-China trade war has no clear end in sight".

"Retailers are already facing a tidal wave of tariffs". "With thousands of consumer products included, little warning, and no time to prepare, businesses are left scrambling".

China targeted 5,200 USA goods with five to 10 percent tariffs, including big ticket items such as liquefied natural gas, lumber and electronics, as well as peppermint oil, pig hides and condoms.

The Trump administration has argued tariffs on Chinese goods would force China to trade on more favorable terms with the United States.

Dialogue between the world's two biggest economies appears severed. "Unless that happens, serious negotiations will be impossible and the likelihood of continued escalation increases", Mr Alden said.


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