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China won't devalue yuan to boost exports, says Premier Li

19 September 2018

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me What China does not understand is that these people are great patriots and fully understand that".

Trump has threatened to "immediately pursue phase three", which could include tariffs on another $267 billion of Chinese exports.

China has vowed to retaliate further against any new USA tariffs, with state-run media arguing for an aggressive "counter-attack".

The president escalated a trade war with China by slapping 10 percent duties on $200 billion of Chinese products.

The U.S. taxes are targeting Chinese goods that Washington says have benefited from improper industrial policies. "But, so far, China has been unwilling to change its practices", including theft and force transfer of technology.

On Monday, the United States administration said it will begin to levy new tariffs of 10 per cent on $US200 billion of Chinese products on September 24, with the tariffs to go up to 25 per cent by the end of 2018.

The US tariffs start at a rate of 10%, before rising to 25% at the end of the year.

The US Trade Representative has published the full list of goods covered by the tariffs, from "frozen retail cuts of meat of swine" and live eels through to "monopods, bipods, tripods and similar articles of aluminum", here (PDF).

"Its CEO Dean Garfield said in a statement: ".China must change, but this is not the way to achieve the needed market access in China. They will either need to eat the costs of the 10% tariffs and suffer lower margins or pass them on to consumers.

USA companies have already said they are anxious about the effect of higher costs on their businesses.

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American firms have previously warned they are anxious about the effect of higher costs, saying they could bring job cuts. And China has retaliated in kind, hitting American soybeans, among other goods, in a shot at the president's supporters in the US farm belt. China wants to come over and talk, and we are always open to talking.

The iPhone was not among the "wide range" of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.

"Tensions in the global economic system have manifested themselves in the US-China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement on Tuesday.

China's yuan currency has weakened by about six per cent against the USA dollar since mid-June, offsetting the 10 per cent tariff rate by a considerable margin.

"We have been repeating that sound and steady development of China-US ties serves the fundamental interest of the two sides and what the worldwide community wishes to see".

China could respond by imposing higher tariffs on USA goods, or it could look into other ways of hurting the USA economy.

"The US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides". Those goods will now be taxed 10 per cent. "Fortunately, the USA economy is humming so we don't have to worry as much about what this will do to our economy".

No items were added, the officials said.

Former chief economic adviser Gary Cohn tried desperately to convince Trump that tariffs would cost jobs and investment and raise little revenue, at one point telling him that he had a "Norman Rockwell" view of an American economy that bore no relationship to the services-dominated USA economy today.

China won't devalue yuan to boost exports, says Premier Li