China's Commerce Ministry says that nearly half of the companies to be affected by new USA tariffs on Chinese goods would be foreign firms. China, however, has taken well-considered countermeasures which have not only defeated the US' designs but also alienated some American businesspeople who earlier had supported the Trump administration in the hope of deriving some benefits for themselves.
Ma told China's Xinhua news agency Wednesday the promise he made - shortly before Trump took office - was based on friendly cooperation between the United States and China and rational growth for China-U.S. trade.
"We're having a tremendous impact on China".
By imposing taxes on an additional $200 billion in Chinese goods, President Donald Trump has intensified a battle of wills between the world's two largest economies - and the outcome is far from certain.
The trade war has started to hit Chinese cities and provinces, especially those that depend on US order books.
Some economists and trade analysts suspect that Trump has bigger goals than just getting China to change its aggressive high-tech industrial policies. "As the largest retailer in the United States and a major buyer of USA manufactured goods, we are very concerned about the impacts these tariffs would have on our business, our customers, our suppliers and the USA economy as a whole", the letter read in part.
Moreover, owing to their strained relations with Trump, some US media outlets could turn Sino-US trade and economic ties into a US domestic political topic, further complicating Sino-US trade ties. That escalation could spur USA companies to pre-emptively load up on those goods, too, Deutsche Bank said in a report this week. "If we had known this time past year, we most likely would not have brought those jobs back".
China and the U.S. have raised tariffs on $50 billion worth of each other's products since July as their trade tensions escalated over the past few months.
In July the U.S. imposed tariffs on $34 billion worth of Chinese exports to the United States, extending them to another $16 billion of Chinese goods in August.
"After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property - such as forcing United States companies to transfer technology to Chinese counterparts", he said.
Many companies have warned that Trump's tariffs threaten to disrupt their businesses and depress their revenue.
Despite all this, China should maintain its composure and continue making concerted efforts to overcome the temporary difficulties, strongly oppose protectionism, promote multilateral free trade under the auspices of the World Trade Organization, and deepen reform and opening-up. Despite this, the mood among many manufacturers at the fair remained upbeat. If the Chinese economy slows under the weight of US import taxes, the global economy might also stumble, according to Stephanie Segal, deputy director of the Center for Strategic and worldwide and Studies, a Washington think tank. But most foresee the threat to the US economy rising.
In the long run higher prices for Chinese goods in the U.S. might damage its market share there, with negative effects on employment in China, but that's a slow process. "Because we can't let them do anymore what they've done", he said. But the USA and China both propose justifying tariffs under domestic law, rather than following established WTO procedures, limiting the WTO's ability to mediate.
Yet, despite Beijing's willingness to negotiate some kind of a deal to stop the escalation of the trade war, the White House is trying to coerce their partner into submission.