China Preparing Response to US Tariffs

China is preparing a range of responses to planned U.S. tariffs and will stand up to protectionism, but it still hopes for dialogue, Beijing’s ambassador to the World Trade Organization (WTO) said on Thursday.



Zhang Xiangchen said China was considering a WTO complaint against the package of tariffs that President Donald Trump is expected to announce later on Thursday.

“This is a legitimate right for China to do that. But I would not exclude other options, because if the flood approaches you have to bank up to keep it out,” he told Reuters.

Thursday’s tariff announcement is the first in a string of U.S. trade restrictions aimed squarely at China and intended to curb alleged theft of U.S. technology.

U.S. Trade Representative Robert Lighthizer said on Wednesday the tariffs would target China’s high-technology sector and could also include restrictions on Chinese investments in the United States. Other sectors like apparel could also be hit.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza