China confident it will win trade war

In stark contrast to the complaints and concerns in the United States, the Chinese people have adopted a very understanding and supportive attitude toward measures the government has taken, and are very confident that China will win the trade war.

The country is already prepared for a possible reduction in soybean imports from the United States, cancelling tariffs of three percent on soybean imports from Bangladesh, India, Laos, South Korea and Sri Lanka, to help substitute the American products.

China also confirmed it will give subsidies to corn and soybean producers in the northeastern provinces of Liaoning, Jilin, Heilongjiang and the Inner Mongolia Autonomous Region, in a package of policies released in April of this year to boost agricultural growth.

Experts think the impact of the U.S. trade war is controllable. The research team led by central bank economist, Ma Jun, found that the trade war, which involves $50 billion between China and the states, will slow China’s GDP growth by 0.2 percent, with full consideration of the second and third rounds of impact on related industries, according to Xinhua.

Zhao Changwen, director general of the Industrial Economy Research Department of the Development Research Center of the State Council, China’s cabinet, also believes that this round of tariffs will have a limited impact on both China’s economic growth and employment.

Li Yong, a senior fellow with the China Association of International Trade, said China has the confidence and capabilities to win the trade war, as its economic growth is steady and its industrial categories can drive the economy forward.

The country has strong impetus for innovation, Li pointed out. China’s investment in research and development accounts for 2.1 percent of the national GDP, not to mention that the country is the world’s second largest source of international patent applications.

Entrepreneurship is strong in China and new commercial activities are continuously creating new economic advantages, he said. In addition, the new round of reform and opening up will create a favorable external environment for the economy and help improve China’s foreign trade relations.

Chinese net users claim that China’s countermeasures are well-founded and their country will turn a crisis into an opportunity for development. China is not the creator of this trade war but is not afraid of it. They also say that development should be the country’s top priority and the key for China is to focus on its own affairs.

Responding to the trade war, China is not only safeguarding its own interests, but also those of its trade partners and countries supporting the multilateral trade system, said Zhang Jianping, researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

China levied countermeasure tariffs on select U.S. imports at 12:01 p.m. Beijing time, July 6, in response to the additional U.S. tariffs of 25 percent on Chinese goods worth $34 billion earlier the same day.

The Chinese Ministry of Commerce said China will unswervingly commit itself to deepening reform and expanding opening-up, protecting entrepreneurship, strengthening protection of intellectual property rights and creating a good business environment for foreign-invested companies in China.

Some enterprises in the U.S. have decided or are planning to transfer parts of their businesses out of the states in order to avoid possible impacts the protectionist trade policy may incur.

U.S. motorcycle company Harley-Davidson has announced plans to move part of its production out of the states, in a bid to cut additional costs caused by the tariffs on steel imports from its mother company in Mexico.