Beijing: The Global Times claimed that China would fight the trade war till the end saying ‘China will never be scared of the US threats and pressures. The US activities are only increasing economic and trade tensions. China has no other option or loophole, and China will fight the trade war until the very end. No one and no power in the world should underestimate the iron will, strength and determination in a war, of the Chinese people.’ Global Times is the mouthpiece of the Chinese government, and it always gives priority to the policies and opinions of the Communist party.
At the end of Last week, new information surfaced regarding the Chinese economy, and it confirms the jolts received because of the trade war with the United States. As per the report released by the National Bureau of Statistics of China, the growth rate in the industrial sector, the central pillar of the Chinese economy, has plummeted by 5%. This is the lowest for the last 17 years. Information regarding the decline in industrial production had been revealed even in the last month. The May statistic shows that industrial production is at its lowest level since the last two months.
The sale of cars in China has declined by more than 16%, and investments in real estate and the percentage of imports also has gone down. The National Bureau of Statistics has revealed that inflation is at its highest in the last 15 months. It is believed that the reason behind all these negative indices is the trade war with the United States. Therefore, it has been endorsed once again that the Chinese economy is receiving a severe blow because of the trade war with the United States.
Against this background, it is significant that the ruling Chinese government is speaking a language of fighting a long-lasting trade war. The Global Times, in its article, has lashed out at the United States saying that at a time, when there is a globalisation of trade, taking a protectionist stand on the trade issue cannot be a solution, instead, it will prove to be a poison. The Chinese mouthpiece has warned that the US people only, will suffer the effects of the taxes imposed by the United States, on Chinese goods and inflation will rise in the United States.
The trade talks between the United States and China have failed, and the United States has imposed additional taxes on Chinese goods worth USD 250 billion. In retaliation, China has targeted US goods worth USD 110 billion. But the Chinese retaliation seems to have had little or no effect on the US economy, and the US economy is instead showing, signs of positive growth since the last few months. Therefore, the US President is preparing to take a more aggressive position against China and the process to impose taxes on the remaining import of Chinese goods has already started.
On the other side, China too, has started targeting the US companies. Actions like reducing the exposure in US bonds, stopping the supply of Rare Earth Minerals, have also been indicated by China. The article in the mouthpiece newspaper, Global Times, points to China increasing the scope and extent of the action.