On Friday, Chinese Media said that the new protectionism agenda by the U.S. is self-defeating and a symptom of delusions that must not succeed in distracting China from the path it is on to modernization. This came as Beijing continued with its war of words with the U.S. while financial markets paid the price.
Earlier this week U.S. President Donald Trump made threats about adding another $200 billion in Chinese imports with a tariff of 10% if China were to retaliate against the previous tariffs he added for $50 million in Chinese imports.
Investors are worried that a trade war of large proportion would weigh on the global markets including shares in China, which posted their biggest loss for a week since the beginning of February. Ordinary Chinese even aired their disapproval across social media.
The commerce ministry in China accused the U.S. Thursday of making sudden unaccountable changes related to trade issues while warning that the interests of farmers and other workers in the U.S. would be hurt in the end, vowing to retaliate with qualitative and quantitative measures.
China’s official China Daily contained an editorial that said the U.S. did not understand that business it carries out with China supported millions of jobs in America and that the approach by the U.S. was self-defeating.
The newspaper, which is written in English cited Rhodium Group research that said investment by the Chinese in the U.S. dropped by 92% to just over $1.8 billion during the first five months of 2018, which was the lowest level for the last seven years.
The White House administration issued a new report on Tuesday about how policies in China, and what it called economic aggression by China, were threatening technologies as well as intellectual property of not only the U.S. but the world.
While the report from the White House did not move beyond what has been said previously by the U.S., which is China carries out theft of intellectual property and technologies, it did little to help ease tension. China has denied accusations that it steals intellectual property.
Big manufacturers in the U.S. as well as automakers were under pressure as well after Germany-based Daimler cut its profit forecast for 2018. BMW said it is looking at its strategic options due to the Sino-U.S. ongoing trade war.