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China says will 'never surrender' as U.S. trade row heats up

Published 05/13/2019, 04:37 AM
© Reuters. FILE PHOTO: Containers are seen at the Yangshan Deep Water Port in Shanghai

By Ben Blanchard

BEIJING (Reuters) - China will never surrender to external pressure, the government said on Monday, though stopped short of announcing how Beijing will hit back after Washington renewed its threat to impose tariffs on all Chinese imports in an escalating trade dispute.

The trade war between the world's top two economies jumped up a gear on Friday, with the United States hiking tariffs on $200 billion worth of Chinese goods after President Donald Trump said Beijing "broke the deal" by reneging on earlier commitments made during months of negotiations.

Trump also ordered U.S. Trade Representative Robert Lighthizer to begin imposing tariffs on all remaining imports from China, a move that would affect about an additional $300 billion worth of goods.

Beijing has vowed to respond to the latest U.S. tariffs, but has announced no details yet.

"As for the details, please continue to pay attention. Copying a U.S. expression - wait and see," foreign ministry spokesman Geng Shuang told a daily news briefing.

"We have said many times that adding tariffs won't resolve any problem. China will never surrender to external pressure. We have the confidence and the ability to protect our lawful and legitimate rights," Geng added, responding to a question on Trump's threat of putting duties on all Chinese imports.

State media also kept up a steady drum beat of strongly-worded commentary on Monday, reiterating that China's door to talks was always open, but vowing to defend the country's interests and dignity.

"At no time will China forfeit the country's respect, and no one should expect China to swallow bitter fruit that harms its core interests," China's top newspaper, the ruling Communist Party's official People's Daily, said in a commentary.

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State television said in a separate commentary that the effect on the Chinese economy from the U.S. tariffs was "totally controllable".

"It's no big deal. China is bound to turn crisis to opportunity and use this to test its abilities, to make the country even stronger."

Ahead of talks last week, China wanted to delete commitments from a draft agreement that Chinese laws would be changed to enact new policies on issues from intellectual property protection to forced technology transfers. That move dealt negotiations to resolve the trade dispute a major setback.

Trump has since defended the tariff hike and said he was in "absolutely no rush" to finalize a deal.

White House economic adviser Larry Kudlow said on Sunday that there was a "strong possibility" Trump will meet Chinese President Xi Jinping at a G20 summit in Japan in late June.

Latest comments

its about time Trump did something smart, only this does not qualify. Trade issue has gone far beyond reasonable, time to stop this nonesense, one man's ego is another man's pain...Get rid of the childish ego Trump amd think of what's good for your voters....
when you trade with someone, you give out the money and get the valuable goods, who lose? No one. You may be better off if you get a bargain.
Markets will tank. This is it.
vietnam is ok for low-end product manufacture. anything other than that cannot. simple fact. US consumers will enjoy the tariff with higher living costs.
Simple fact. China is irreplaceable in global supply chain. US importer and its people will share the tariff with US. Any idea that they can go to Vietnam or other Southeast Countries to get stuff is naive.
I need to find an article I read last year, but this is actually good for China. They're forced to refocus their economy, financing, etc. The article showed an appreciable slowdown for 2-3 years that results in China surpassing the US even earlier than pre trade wars.
Chinese currency has devalued dramatically in the last few days from 6.7 to 6.88, so it’s clear that China intend to use currency manipulation to keep the cost of goods low for the importers. So it’s clear now that the Chinese people ( not the government) will pay the price of Tariff since currency devaluation will cause their inflation to soar and they will no longer afford foreign products( eg Baby formula, pork, tofu, meat etc)
Or that Trump is escalating a nonsensical trade war causing the dollar to rally...
Since the tariffs will be paid by by US based companies importing Chinese goods, They'd find an alternative source which would in turn promote domestic sales or from any other place they buy which would hurt China's export badly
That's the problem. How do you find alternative source? The answer so far is you can't it in short term. In long term those trade dispute are irrelevant. China is moving away from low end manufacturing anyway
With the Tariffs on, importers will change the supply chain to keep cost low, China will loose the source of income with which it used to buy itself into Global power, the only problem with US is that there’s too much freedom in US, we’re not united against the Chinese where as China is united politically
simple as you. China is irreplaceable in global supply chain. remember that.
What evidence do you have Jack Joy?
Why act like switching suppliers is so simple? It’s not like switching grocery stores across the street from one another. Naive.
If we cave now, there will be no future in America, it will be decades of long term pain because China will steal American IP and duplicate it with very little R&D and then sell back to US, US will loose all advantages to China, including its ability to defend itself militarily and economically
What is the evidence we steal? No future? You mean you who is on internet every second?
Chinese companies will drop the prices to keep US clients. They will suffer from losses in profits and from less dollars going into China.Trump, be tough on them
He’s no prophet, Chinese companies have already reduced prices on some products to be able to continue to sell.
 Right) make America pay again!
lol, they dropped the price so much that last year US scored all time high trade deficit with China. The answer of course is they didn't and American consumers picked up the tab. Goldman had a report specifically analyzed this situation and their conclusion is US consumers paid almost all extra cost
well at least those tariffed products can still by pass through Vietnam and others. derp derp
Any production of a product can be shifted to another place. It just takes time.
It takes years. Longer than Trump’s patience level ...
Can only be produced in China? Lol
To crypto we go.
We are in bad shape...once prices start to go up, inflation kicks in, Fed will.have to raise rates. This will spell the end of economic expansion and we will head into a prolong depression. We are talking about the biggest depression ever in history. So Trump better be careful. If market starts to retract, people will out out their miney and we will have a bug market crash.
Tarriffs are bad for everyone, so it was stupid for the Chinese to not make a deal.
What makes you think he has no education?
Tariff are bad for everyone so it waa stupid to use them as a negotiating tool in the first place.
Our farmers need to focus on crops for America anyway. I always focus on US made goods, and always find better value there. This is an excellent opportunity for the country to depend on quality and necessity in their purchasing decisions. I believe China’s reluctance to codify by law the end of their lying, cheating and stealing will soon be seen as a gift. Look closely at the country of manufacture. The best of nearly everything is still made in The US. For consumer electronics, support allies such as Taiwan, Japan, Korea, Indonesia etc.
So, China instead of growing 6-7% they will grow 4-5.....it's about time.
They're pegged to grow around 6% after accounting for tariffs. US closer to 2% if not lower.
Where is the rest of the worldall countries need to respond to China
Trump has alienated our allies.
China has used the money they ripped off front Americans to buy into global power, look how much money they are giving out to Europe and Afican countries for their belt and road project. Where do you think that money is coming from
Sure, the middle class will bail out the wealthy again. No problem.
USA should just break off all talks with China, leave the high tariffs for a year or more. They're freeloaders anyway who steal
So, put the US economy into a recession and let China buy soy from Brazil. Yeah, that’s smart...
China says it shouldn't swallow any bitter pill that will harm their interests, really?After 30 years of being fed candy, they are addicted to our sugar but Trump has put the sugar up, no more sugar at our expense. China at a recent Asian summit urged its neighbors to drop tariffs because they don't help economic prosperity. But it is China who has refused to drop its tariffs, although under pressure they have lowered them some. So as long as they remain in place who are they to criticize Trump for doing what they have done for 30 years.It's TRUE, American corporations will pay Trump's tariffs but, soon they will find alternative markets to sell and buy from leaving China uncompetitive. Last month China expected exports to rise 2.3% but instead they fell 2.7%. I see this will continue even as China has been trying to prop up their economy, it hasn't helped except increased their debts which have sky rocked over the last few years.
You are correct, but Chinese companies will drop the prices to keep US clients. They will suffer from losses in profits and less dollars going into China.Trump, be tough on them!
Absolutely right, the Chinese only acknowledges power, not fairness
The Chinese need to get off their high horse. But they are unable to since enforcing intellectual property rights would cut right into their primary business strategy, which is copying.
China have been unfair on the trade with the US for so long that is why its GDP had surpassed other country becoming the second largest economy in the world. Not only this they are crooks , steeling the IP of the US company that is stationed in their country. I strongly agree with Trump, someone should stand up for this crooks !!!
your comments show you never understand China. go and have a look how hard Chinese work and how low their lives are. that is the key. if people don't work, any rules wouldn't result in positive GDP
Kudlow, stop lying and you did every single time.  Trump gave Xi 1 month deadline to respond to the trade deal.  The end of June is more than 1 month away.  Hello!!!!!
China trying to wait out election. They will stall but this time it is gonna hurt.
China will capitulate sooner or later. The US is tired of unfair trade practices by China and the rest of the world.
Agreed they have much more to lose given their house of cards economy. Short term pain long term gain. Trump fixing years of failed foreign policy
China sells to every country in the world. All the tarrifs are going to do is make 75% of the products in the US more expensive. The US sells NOTHING that China can't buy elsewhere. China sells more to the US because Americans are addicted to cheap stuff. Chinese don't need products by inflated by union wages. ******* but it's a fact. Show me ONE iPhone factory in the US.....
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