A flag stand at the Yiwu wholesale market in Zhejiang province, China, May 10, 2019.
Aly song | Reuters
BEIJING – China stressed the need for greater cooperation with the United States, a day after it became clear that President-elect Donald Trump would become the next leader of the White House.
“The Chinese side is willing to intensify communication with the US, expand cooperation and resolve differences on the basis of mutual respect, peaceful coexistence and win-win cooperation,” Chinese Commerce Ministry spokesman He Yongqian said on Thursday reporters in Mandarin, according to a CNBC translation.
She was responding to a question about China's views and planned countermeasures given the possibility of increased U.S. tariffs and restrictions on high-end technology.
“Together [we can] “We will steer China-US economic and trade relations in a stable, healthy and sustainable direction, for the benefit of both countries and the world,” the trade spokesman said.
Their comments echoed those of Chinese President Xi Jinping, who highlighted the benefits of bilateral cooperation in a congratulatory message to Trump earlier in the day, a State Department statement said.
During Trump's first four-year term, which began in 2017, Washington took a tougher approach toward Beijing. This year, the president-elect threatened additional tariffs on Chinese goods while running for his second term.
Yue Su, chief economist at the Economist Intelligence Unit, said Trump would likely introduce such tariffs in the first half of next year. She added that House Speaker Whiote could speed up the process by invoking the International Emergency Economic Powers Act, or Section 122 of the Trade Act of 1974, which allows the president to impose tariffs in response to a severe offset to charge up to 15% -payment deficit.
Other analysts are less concerned about a significant increase in US tariffs against China.
“Trump’s current tariff proposal is likely the worst-case scenario,” David Chao, global market strategist for Asia-Pacific (ex-Japan) at Invesco, said in a note on Thursday. “I suspect that the new administration will hold off on imposing these tariffs in order to obtain concessions, whether through purchasing more U.S. soybeans or even geopolitical ones.”
He added: “More than that, I don't think Trump's proposed 60 percent tariff policy on China will have any significant impact.” [multinational corporations’] Trust or feeling.”
But Chao said a potential 10% tariff on all exports to the U.S. would likely have a larger impact, weakening global demand and hitting China and the rest of Asia.