Pompeo: US Would Win Trade War with China


In the 36,000-character white paper on Monday, which Beijing said was meant to clarify the facts on bilateral economic ties and set out its stance and reasonable solutions, it pointed out that bilateral trade relations were of great significance not just to both countries, but the world.

Beijing's retaliatory tariffs on $60 billion in American goods were set to go into effect soon after the United States action, the finance ministry announced last week.

Pompeo told Fox News on Sunday.

Earlier this week, the USA slapped an additional 10 per cent import duties on $200 billion worth of Chinese products, warning Beijing of fresh taxes on another $267 billion in Chinese imports.

The US administration will levy tariffs of 10 percent on the $200 billion of Chinese products, with the tariffs to go up to 25 percent by the end of 2018.

Half of all Chinese goods going into the U.S. have been hit by tariffs with Trump insisting that he could go all the way to "500", which would involve extra taxes on the remaining imports worth approximately $267 billion.

The two sides had already slapped tariffs on $50 billion worth of each other's goods. No date has been set for a new round of talks on the trade conflict.

However, the Wall Street Journal, citing unnamed sources on Friday, said Beijing changed its mind about sending Liu after US President Donald Trump on Tuesday announced a new round of tariffs on $US200 million ($A274 million) of Chinese goods.

Beijing's latest tariffs include an additional 5 per cent duty on about 1,600 kinds of United States products including computers and textiles and an extra 10 per cent on more than 3,500 items including chemicals, meat, wheat, wine and liquefied natural gas. Stock markets in China and Japan are closed for a local holiday on Monday but Hong Kong's Hang Seng index remains open and was down by 1.66% at 8.30 a.m. BST (3.30 a.m. ET).

"It would look weak both to the USA and at home", he said, adding that there is "sufficient stimulus in the pipeline" to limit the damage of the latest tariffs on China's growth.

Economists warned that a protracted bilateral dispute would eventually harm growth not just in the United States and China, but across the broader global economy.

This week the U.S. sanctioned a Chinese military procurement organization, drawing a sharp protest from Beijing and a decision to postpone planned military talks.

"With generic polls favoring the Democrats, they may feel that the trade environment may be less hostile after November 6", said ING's chief Asia economist, Rob Carnell.

It leaves Beijing hitting $110 billion worth of U.S. goods, almost everything China buys from the United States.

Trump earlier this month accused China of targeting rural voters who support his presidency by hitting agricultural goods. Business groups say American companies also report Chinese regulators are starting to disrupt their operations through slower customs clearance and more environmental and other inspections.