US-China trade war: Who is underestimating who?

US-China trade war: Who is underestimating who? (VIDEO: Where does China derive its legitimate government?)

KUALA LUMPUR (April 2018): The Reuters report titled “China says ready to deal with any fallout from US trade row” should be bad news for the Americans.

As President Donald Trump continues to step up his tariff-slapping rampage against China, thereby rocking the global economy, it ironically hurts more and more American consumers and businesses by the day.

China is not known to dish out rhetoric - they always mean what they say. And it only means China is ready to counter Trump’s every move in a US-China trade war that was initiated by the American president.

I Love Malaysia-China Silk Road finds it pertinent pose the following questions for the rest of the world in the ongoing and escalating trade war or dispute between the No.1 and No.2 world economies:

> Between the US and China, who is underestimating who in the current trade war? and

> Between the US and China, who is miscalculating the repercussions to their domestic and international markets?

Both the US and China’s socio-economic and political histories are vastly different in their rise to the top of the world in the 21st Century.

Thus, it would be a folly for both the US and China to impose their political, social and economic will on each other.

In short, “What’s good for the US is not necessary good for China! and “What’s good for the goose is good for the gander’ is certainly not true for the US and China!”. Read these two links for context: (What’s good for the US is not necessary good for China!) (‘What’s good for the goose is good for the gander’ is certainly not true for the US and China!)

We also reproduce a video clip above that explains China’s communist government’s legitimacy and unique style of governance of some 1.4 billion people. It also helps to understand the difference between the US democracy and China’s “civilisation state”.

And here is the Reuters report:

"China says ready to deal with any fallout from US trade row

Thursday, 19 Apr 2018
12:33 PM MYT

BEIJING: China is well prepared to handle any negative effects from its trade dispute with the United States, the commerce ministry said on Thursday, adding that China's tariff hikes on U.S. imports will not have a big impact overall on its domestic industries.

The United States would be making a miscalculation if it is determined to contain China's rise, ministry spokesman Gao Feng said at a regular media briefing in Beijing.

Responding to a question on whether China has underestimated President Donald Trump's resolve to pursue trade measures against China, Gao said Beijing hopes Washington will not underestimate China's resolve to fight back.

Most analysts believe the two sides will eventually reach a compromise and avoid a full-blown trade war. But so far, China and the U.S. have held no formal trade talks, Gao said.

In the latest escalations in the widening trade row, the U.S. said this week it had banned American companies from selling parts to Chinese telecom equipment maker ZTE for seven years, while China on Tuesday announced hefty anti-dumping tariffs on imports of U.S. sorghum and measures on synthetic rubber imports from the U.S., EU and Singapore on Thursday.

China will take any necessary measures at any time in response to the U.S. move against ZTE, Gao said.

On April 2, China slapped additional import taxes on 128 U.S. products including frozen pork and wine, in response to U.S. duties on imports of aluminium and steel.

Two days later, China warned it was considering increasing duties on an additional 106 U.S. imports, hitting back at the U.S.'s plan to levy duties on $50 billion of Chinese goods following a months-long intellectual property probe.

China's move on U.S. sorghum is independent from the current Sino-U.S. trade frictions, Gao said.

The global economy will expand this year at its fastest pace since 2010, but trade protectionism could quickly slow it down, the latest Reuters polls of over 500 economists worldwide suggest. - Reuters