China Issues Calm Trade War Response

China Issues Calm Trade War Response

Written by: PaxForex analytics dept - Thursday, 29 August 2019 0 comments

China may be changing its strategy in the trade war it was dragged into by the US. While speculations run high if Trump’s strategy worked and harmed the Chinese economy to the point they felt forced to change direction or if this is a tactical maneuver by China remains to be seen. US President Donald Trump is likely to tweet more messages of a victorious outcome. So far China retaliated to each tariff increase the Trump administration announced. The next round of trade talks between the world’s two biggest economies should take place in Washington in September, but Trump has suggested that they could be cancelled. Are talks back on track after China extended an olive branch to the US administration?

Gao Feng, spokesman for the Ministry of Commerce, stated “China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation of the trade war. China is lodging solemn representations with the US on the matter.” China’s economy continued to slow down and the trade war has had a negative impact, but how far is China willing to compromise with Trump who clearly stated that he is not interested in a fair trade deal and labeled Chinese President Xi as an “enemy”.