China accuses Trump Administration of bullying as trade war flares

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But in a policy statement issued just hours after the dual tariffs took effect, Beijing accused Washington of using tariffs as a means of intimidating other countries to submit to USA wishes on economic matters.

With no settlement in sight, forecasters say the conflict between the two biggest economies could trim global growth through 2020.

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". "We remain open to continuing discussions with China, but China must meaningfully engage on the unfair trading practices".

China published a white paper on Monday that attacked the "protectionist practices" and "trade bullyism practices of the USA administration", according to state-run Chinese news service Xinhua.

Trade talks in Washington last month produced no meaningful progress.

"The trade war is now a reality", said Fitch's chief economist, Brian Coulton, in a report. The ratings firm downgraded its world growth forecast for 2019 by 0.1 percentage point to 3.1 per cent and warned of further downside risks.

Earlier, the two sides imposed 25 per cent penalties on $34 billion of each other's goods in July and another $16 billion in August. "With thousands of consumer products included, little warning, and no time to prepare, businesses are left scrambling". To the contrary, Trump has claimed that his tariffs are meant to protect and support American industry.

Chinese regulators have tried to cushion the blow on their own economy by targeting American goods such as soybeans, natural gas, fruit, whisky and automobiles that are available from Europe, Latin America and other Asian countries.

The United States imposed tariffs on $200 billion of Chinese goods in the early hours, intensifying the acrimonious dispute. The Chinese tariff "restricts the target market a bit for second-wave developers" in the United States, he said. They say Beijing is no longer entitled to concessions it was granted when it joined the World Trade Organization in 2001, such as the right to limit access to its finance, energy and other markets.

In a first, the Trump administration has also punished a unit of China's defense ministry for buying fighter jets and missiles from Russian Federation in defiance of sanctions on Moscow.

Soon after the fresh duties went into effect, China accused the United States of engaging in "trade bullyism" and said it was intimidating other countries to submit to its will through measures such as tariffs, the official Xinhua news agency said.

Chinese leaders have announced changes this year including tariff cuts and plans to end ownership limits in their auto industry.

China imports far less from the United States, making a dollar-for-dollar match on any new USA tariffs impossible.

"Following President Trump's threat of further escalation, we now think the probability that all imports from China will ultimately be subject to tariffs has risen to 60 percent", the bank's analysts wrote in a research note, quoted by media.

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