China will respond as necessary in the event of a trade war with the United States, Foreign Minister Wang Yi said on Thursday, while warning that such a war would only harm all sides, reports Reuters.
President Donald Trump said he is prepared to launch tariffs of 25 percent on imported steel and 10 percent on imported aluminum. Chief of the White House wants to counter cheap imports of these raw materials from China which undermine U.S. industry and jobs.
According to Reuters, Trump’s administration has faced growing opposition to the tariffs from prominent congressional Republicans and business officials worried about their potential impact on the economy. Trade tension with the United States has jumped to the top of the list of risks facing China this year, Zhou Hao, senior emerging markets economist at Commerzbank, told the Reuters Global Markets Forum this week, and its latest data showed exports surging 44.5 percent in February from a year earlier.
“China would have to make a justified and necessary response. Especially given today’s globalization, choosing a trade war is a mistaken prescription. The outcome will only be harmful,” said Foreign Minister Wang. Wang also said that China do not have to displace The United States in a leading role for globalisation.
Trade tensions between the world’s two largest economies have risen since Trump took office in 2017, and although China only accounts for a small fraction of U.S. steel imports, its massive industry expansion has helped produce a global glut of steel that has driven down prices, reports Reuters.