Another Chinese warning: Sino-US trade to spell disaster

Beijing has issued another warning to Washington over President Donald Trump’s decision to impose hefty tariffs on steel imports from China, saying that a Sino-US trade war would bring “disaster” to both countries and the world economy.

“There are no winners in a trade war, and it would bring disaster to our two countries as well as the rest of the world,” Chinese Minister of Commerce Zhong Shan said at a briefing on the sidelines of the country’s annual parliamentary session on Sunday.

“China does not wish to fight a trade war, nor will China initiate a trade war, but we can handle any challenge and will resolutely defend the interests of our country and our people,” he said.

The comments were made after Trump announced plans last week to levy 25-percent tariffs on steel imports and 10-percent tariffs on aluminum.

On Friday, the US president said the tariff plan would take effect in 15 days and not initially apply to Canada and Mexico, adding that Washington’s close partners on security and trade could also negotiate exemptions.

China is the world’s biggest steel producer. Chinese Foreign Minister Wang Yi previously advised Washington against launching a trade war, warning that Beijing would give a “necessary response” if such a war was waged.

In 2017, China exported about 740,000 metric tons of steel products to the US, down by about 6 percent from 2016, according to the US Census Bureau.

Trump believes the tariffs will safeguard US jobs, but economists say the measures will destroy more jobs than they create and will hurt the very US companies and workers that Trump has said he aims to protect.

The tariff plan has sparked a flurry of criticism both at home and aboard.

During his presidential campaign, Trump repeatedly blamed what he called unfair trade deals and allegedly abusive practices by countries like China and Mexico for the massive US trade deficit and the loss of high-paying American factory jobs.