The US could find itself mired in a trade war, an organ of the Chinese Communist Party warned, if the Trump administration attempts to put steep tariffs on Chinese imports.
Trade between the US and China would be “paralyzed” if President-elect Donald Trump hikes taxes on Chinese goods, a commentary published by The Global Times stated on Sunday.
“A batch of Boeing orders will be replaced by Airbus,” the paper stated. “US auto and iPhone sales in China will suffer a setback, and US soybean and [corn] imports will be halted. China can also limit the number of Chinese students studying in the US.”
The publication is “a nationalist tabloid,” and a wing of the Communist Party’s People’s Daily, according to Reuters.
The editorial referred to comments made last week by Trump aide Judy Shelton.
“In an interview with Bloomberg Television Friday, when questioned as to whether US President-elect Donald Trump will formally declare China a currency manipulator,” the publication noted, “[Shelton] said ‘he is someone going to carry through on what he says.'”
The publication also referred to a promise by Trump to impose a 45 percent tariff on Chinese goods, and promised Beijing would retaliate. The editorial cited a brief bilateral commercial dispute in 2009, when President Obama imposed 35 percent tariffs on tires from China.
“In response, China took retaliatory steps of imposing tariffs on US chicken and automotive products,” the Global Times stated. “Both China and the US suffered losses as a result. From then on, the Obama administration waged no trade war against China.”
The newspaper, however, also noted that it believed Trump would be pliable.
“Trump as a shrewd businessman will not be so naïve,” it stated. “None of the previous presidents were bold enough to launch an all-out trade war against China.”
“If Trump wrecks Sino-US trade, a number of US industries will be impaired,” the commentary added. “Finally the new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences.”
On Monday, Chinese President Xi Jinping spoke with Trump on the phone. The two struck a more measured tone, raising the question of Trump walking back some of his central campaign promises.
“During the call, the leaders established a clear sense of mutual respect for one another, and President-elect Trump stated that he believes the two leaders will have one of the strongest relationships for both countries moving forward,” Trump’s transition team said in a statement, according to Reuters.
Xi said that Beijing and Washington must “promote the two countries’ economic development and global economic growth” and “push for better development going forward in China-US relations.”
“The facts prove that cooperation is the only correct choice for China and the United States,” Chinese state television cited Xi as saying.
Reuters noted that the Chinese President’s statements “were a reiteration of phrasing typically used by Beijing to describe bilateral relations.”
