CChina threatens Trump with a tough answer.
China's leader Xi Jin Ping spoke at the meeting with the heads of major campaigns, mostly American and trans-national, and responded to his actions on duties against China and other unfriendly actions (prohibiting the acquisition of technology in the US, in particular).
Xi Jin-Ping said: "You in the West have the notion that if you are hit on the cheek you need to substitute another cheek." In our culture, we respond with a punch. "
The head of China reacts to Trump's statements that he will impose duties on more than 200 billion goods from China. China cannot answer equally - the volume of imports from the US does not exceed $ 170 billion.
However, China can spoil the life of US companies because of the following reasons: 1) Prohibit transactions to buy business in China. 2) Tighten checks and licenses for companies operating in China. 3) Encourage Chinese consumers to boycott goods from the U.S. (China is a huge market with over 1 billion buyers).
Xi Jin Ping said that for many months China had tried to react with restraint to trading attacks from Trump. The representative of China traveled several times to Washington to negotiate a proposal to increase the purchase of goods from the US to balance US-China trade - but without result. Now, China is in the position of tough resistance on July 6, when the first Trump tariff for Chinese goods worth $ 34 billion (household appliances, equipment) will come into force. China will introduce reciprocal duties on goods from the U.S. (soybean, energy, other goods) - on the same day.
Potentially, China's market will be hit by Apple's $ 40 billion iPhone market.
We'll follow the development of the story.
