China urging U.S. companies to lobby Washington over trade war

Vastavam web: China on Thursday said foreign firms operating in China would suffer in a trade war, urging U.S. companies to lobby their government to protect their interests, and said no talks to end the impasse were currently under way. Earlier on Thursday, South Korea warned that its exports of high-tech components could be hurt as the U.S.-China trade dispute escalates, Beijing cut its forecast for soybean imports and the Chinese currency fell as worries about fallout from the simmering conflict grew.

Gao said no negotiations between the two sides were going on currently, adding “The precondition for negotiations is trust. From what I’ve learnt, both sides have not been in touch about restarting talks. ”On Wednesday, Beijing said it would hit back after the Trump administration raised the stakes in their trade dispute, threatening 10 percent tariffs on $200 billion of Chinese goods, a swift escalation after an earlier round of tariffs took effect only on Friday.

While Chinese shares regained Wednesday’s heavy losses, with the Shanghai Composite index rising 2.2 percent, the yuan fell against the dollar following the central bank’s weakest daily fixing in nearly a year and Washington’s fresh tariff threats. Last year, China only imported about $130 billion of U.S. goods, so to retaliate it might increase the size of the tariffs it imposes or resort to what it calls “qualitative” measures, which U.S. businesses fear could mean reprisals against their China operations.

A survey by the American Chamber of Commerce in Shanghai found that most U.S. businesses operating in China oppose the use of tariffs in retaliation for the challenges they face, from an uneven playing field to poor protection of intellectual property rights. On Thursday, Beijing cut its forecast for imports of soybeans – the most-valuable crop it buys from the United States – after it imposed a 25 percent retaliatory tariff on an array of agricultural goods, which could inflict pain in Trump-supporting states such as Iowa, Kansas and Texas. China warned that higher prices due to trade conflicts with the United States would curb demand as farmers switch to alternatives for animal feed.