Given its trade surplus with the U.S., China will have to fight this trade very carefully. Beijing has let it be known that it is open to dialog.
On Wednesday, in a move that is indicative of the economic impact the U.S. tariffs on its economy, China stated it will retaliate if the United States takes further steps in the trade war.
The comment comes in the wake of the Trump administration proposing to slap 25% tariffs on imported Chinese goods worth $200 billion.
The U.S. move is aimed at balancing trade between the two nations. Washington has also alleged that China forcibly transfer propitiatory U.S technology to its domestic firms. Part of its trade actions are aimed at correcting that.
At a news briefing in Beijing, Chinese Foreign Ministry spokesman Geng Shuang stated, U.S. pressure on trade won’t work, and that Beijing has always upheld using dialogue to resolve trade issues.