The Chinese government has announced a strong opposition to new tariffs threatened by Donald Trump's administration, as fears of a prolonged trade war hit record highs.
China's Reaction to Tariffs
In a statement made on Tuesday, the Chinese Ministry of Commerce condemned Washington's plan to impose additional tariffs as 'a mistake on top of a mistake.' The statement further added, 'If the US insists on its own way, China will fight to the end.' This followed Trump's vow to impose an additional 50% import tax on Chinese goods if Beijing does not withdraw its recent retaliatory duties.
China's Market Support Measures
As tensions escalated, Chinese authorities took steps to support the market. They loosened their grip on the yuan to help exporters and directed a group of state-backed funds, known as the national team, to buy assets. Reports also suggested that some stimulus might be moved forward to stabilize the economy.
Future of Trade Relations
Political tensions show no sign of easing. Observers note that Trump, who returned to the White House earlier this year, has not spoken with Chinese President Xi Jinping since taking office again. Analysts worry that lack of direct engagement could inflame the trade war despite China's reduced dependence on American demand.
For now, investors worldwide remain on edge, fearing further escalation if neither side backs off from their stance.
