China warns US of trade countermeasures

By BLOOMBERG

BEIJING • Chinese officials and state media said the country will defend itself in a trade war, warning that President Donald Trump’s tariff plans could backfire on the US.

Vice Premier Liu He told US Treasury Secretary Steven Mnuchin in a phone call that Washington’s investigation into alleged Chinese infringement of US intellectual property violates international rules and will harm the interests of both countries, the official Xinhua News Agency reported on Saturday.

“China is prepared and has the ability to defend its national interests,” Liu was cited as saying.

Liu, top economic counselor to President Xi Jinping, urged both countries to work together and ensure the overall stability of China-US trade and economic ties, according to Xinhua.

American corporate giants such as Apple Inc, Boeing Co and Intel Corp rake in huge revenues from China each year and will see their global interests damaged in a trade war, according to a commentary carried on the front page of the Saturday overseas edition of the People’s Daily, the official mouthpiece of the Chinese Communist Party.

Lou Jiwei, chairman of the National Council for Social Security Fund, said so far China’s response to the Trump administration’s tariffs has not hit the US “where it hurts”.

“If I were still in the government, I would be hitting soybeans, automobiles and airplanes,” the former finance minister said at the China Development Forum on Saturday.