China won’t use yuan exchange rate as trade war weapon, Li says


China said Tuesday it had no other choice than to retaliate because the USA has created "new uncertainty" between the two countries.

U.S. President Donald Trump said on Monday he will impose 10 percent U.S. tariffs on about $200 billion worth of Chinese imports, but he spared smart watches from Apple (AAPL.O) and Fitbit (FIT.N) Inc and other consumer products such as bicycle helmets and baby vehicle seats.

"They also know that I am the one that knows how to stop it", Trump said in a Tweet. "What China does not understand is that these people are great patriots".

Sohn said he believed China will retaliate against every US tariff and the tit-for-tat exchanges will escalate until the taxing all Chinese imports - $524 billion past year.

Economists at UBS Group AG say even a 10 percent tariff would slow the U.S. economy in the fourth quarter by enough to stop the Federal Reserve hiking interest rates again in December.

"In order to safeguard our legitimate rights and interests and the global free trade order, China will have to take countermeasures", the country's Ministry of Commerce said in a statement, adding that "We deeply regret this".

Mr Trump was defiant and said his supporters will not be swayed.

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"China has always managed to find the proper solutions to put its economy back on track", the China Daily said.

"The President really hates the bilateral trade deficit with China", Mr Scissors said.

Only last week, Beijing said it welcomed overtures from USA officials offering to re-start trade talks, but press reports indicate China would call off any meetings if the new punitive duties take effect.

"The tariffs could be an excuse, but what China is really looking for is a signal from the USA that President Trump will talk to them directly".

The officials told reporters the lower initial tariff rate would give USA businesses time to find new suppliers.

Trump added that many of those workers back his presidency, saying the Chinese tariffs are an attempt to influence US elections. The group questioned whether or not the tariffs are actually legal-it said "Congress has not given the president or the USTR a blank check to pursue a trade war"-and expressed its hope that the Trump administration will rethink the tariffs".

At the same time, the administration said it is still open to negotiations with China.

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However, some products that help computer networks operate, such as routers, will remain on the new list, the official said.

Apple had warned publicly against the impact of tariffs, however, the iPhone is expected to be included next time should the Trump administration impose further duties.

"We hear that there is a move to make the SOEs stronger, bigger and better", Harborn said.

"Our concern with these tariffs is that the US will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for US consumers", Apple said earlier in a letter commenting on the proposal.

But in a last-minute reprieve, he spared smart watches from Apple and other consumer products like bicycle helmets and baby auto seats from the tariffs. "I think that kind of tactic is not going to work with China", Fang Xinghai, vice chairman of China's securities regulator, said at a conference in the port city of Tianjin.

They warned, however, if Beijing decides to execute its own round of tariffs on American goods, the president will unleash further measures.

In a further attempt to cushion the blow, Washington canceled plans to put tariffs on about 300 product categories, including hot consumer items like smart watches and Bluetooth-enabled devices, chemicals for manufacturing, agriculture and textiles, as well as bicycle helmets, and children's high chairs, auto seats and play pens.

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