China says trade war with U.S. will only bring disaster

China says trade war with U.S. will only bring disaster

China says trade war with U.S. will only bring disaster

"There are no winners in a trade war, and it would bring disaster to our two countries as well as the rest of the world", Minister of Commerce Zhong Shan said at a briefing on the sidelines of China's annual parliamentary session.

China does not want to enter in a war with the United States of America, as it would have devastating consequences for world's economy.

China has repeatedly vowed to defend its "legitimate rights and interests" if targeted by U.S. trade actions. "But we can handle any challenge, and will firmly defend the interests of our nation and our people".

This could be further cut by 35 per cent if the United States lifts the ban on high-tech exports to China, he added.

The United States and China are scheduled to hold trade talks in Beijing in the near future. But Zhong said communications have not been completely broken off. The figure for February fell slightly from the previous month to US$21 billion, according to the latest data from the customs administration.

Zhong said that Beijing would continue to "relax market access" to China, and that it would also attach greater importance to intellectual property rights, another point of tension with the U.S.

"We are still in talks, and we are sure that both sides will keep talking for the next step", he said.

On Thursday, Trump announced he was ordering the imposition of a 25 percent tariff on steel imports and 10 percent tariff on aluminum, but indicated certain countries might be exempted.

The country will also work to promote the liberalization and facilitation of trade and investment along the Belt and Road, while carrying out major foreign aid projects including the Happy Home Projects, the Anti-Poverty Projects and the Health Recovery Projects, Zhong said.

Mr Trump believes the tariffs will safeguard American jobs, though many economists say the impact of price increases for users of steel and aluminium, such as the auto and oil industries, will destroy more jobs than curbs on imports create.

China's response came after a Bloomberg reporter asked if the country would consider retaliatory behavior following the tariffs.

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