The United States is fully responsible for escalating trade tensions between Beijing and Washington, the Chinese Ministry of Commerce said on Thursday, adding that the Chinese side has made significant efforts to avoid the conflict.
“China has done its utmost to avoid escalating trade friction,” the ministry said in a statement. “The United States is totally responsible for the current situation.”
The body also noted that from February to June this year, China and the United States held four rounds of high-level economic negotiations. During the talks the China-US Joint Declaration was adopted, in which both sides stated that they have agreed to strengthen trade and economic cooperation. However, “because of domestic policy, the US denied its words, blatantly abandoned the resolution of bilateral consensus and insisted on waging a trade war with China,” the ministry added.
In June, US President Donald Trump announced an additional 25% tariffs on about $50 billion in annual Chinese imports. Last Friday, tariffs of $34 billion on imports from China went into effect. In retaliation, Beijing’s tariffs for US products went into effect as well.
On Tuesday, the US government announced that Washington planned to impose new tariffs of 10% on an additional $200 billion in Chinese imports.
Meanwhile, the Chinese Central Bank continues to weaken the yuan artificially as a way to offset trade losses caused by US tariffs. On Thursday, the currency fell 0.73% against the dollar, a sign that the trade war between the two countries may be just beginning.
It has been revealed to Fort Russ News through our Belgrade-based sources in the Chinese diplomatic sector, that China intends to operate on the basis of reciprocity. Our source, speaking on terms of anonymity, explained that China is confident that the US will be unable to isolate China from the global economy, even if the US succeeds in isolating itself. The source continued, that they are well aware that those who own US debt – China and Japan being two of the world’s largest holders – don’t expect this debt to be paid. Rather, that this will maintain a relationship beyond its ‘expiration date’.
The People’s Bank of China established the average exchange rate at 6.6726 yuan per dollar, an increase of 492 points from Wednesday.
Every major economist as claimed that Trump has entered a trade war with China that it has no chance of winning, so it remains confusing why the US President is adamant in continuing this aggressive policy against Beijing.