BEIJING/WASHINGTON - China is ready to retaliate if US President Donald Trump goes ahead with a tariff hike on $200b worth of Chinese goods and is confident it can maintain "steady and healthy" economic growth.
The Trump administration is poised to impose 25 percent penalties on Chinese goods in a new escalation of their trade war over US complaints that Beijing steals or pressures companies to hand over technology. China has announced a $60bn list of American products targeted for retaliation. "China will have to take necessary countermeasures if the US side ignores the opposition of the overwhelming major of its enterprises and adopts new tariff measures," Commerce Ministry spokesman Gao Feng said.
Meanwhile, Washington and Beijing continue to hold discussions to try to resolve the ongoing dispute over a China's trade policies, the top White House economic adviser said Friday. With financial markets and US businesses bracing for the possibility President Donald Trump could soon slap tariffs on another $200 billion in Chinese goods, economic adviser Larry Kudlow said he was hopeful a solution might be found.
"We're continuing the talks," Kudlow said on CNBC, adding that China would find itself "more isolated" if it resisted opening its markets.