China Building a Free Trade Network

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A Chinese emissary is warning at a meeting of USA state governors that a trade war with his country won't be easily won.

She said, "The Chinese government entered the WTO because the integration of the letter into economic globalization was in line with the historical trend, and promoting free and open trade could achieve mutual benefit and win-win results".

Its complaint to the organization, which oversees global trade rules, comes less than one week after the US government proposed 10 percent tariffs on a $200 billion list of Chinese goods, to take effect in September at the earliest.

China and the European Union (EU) on Monday agreed to jointly work to safeguard the rules-based global order, promote multilateralism and support free trade.

U.S. Trade Rep. Robert Lighthizer said their retaliation violates the rules of the Geneva-based WTO, which mediates trade disputes.

Canada, China, the EU, Mexico and Turkey have imposed retaliatory tariffs on US$23.4 billion worth of U.S. goods in response to Mr Trump's tariffs on steel and aluminium.

"It is the common duty of Europe and China, but also America and Russian Federation, not to destroy (the global trade order) but to improve it, not to start trade wars which turned into hot conflicts so often in our history", EU Council President Donald Tusk said in Beijing.

China's economy is growing at a slower pace in the second quarter with the trade dispute between Beijing and Washington shaking the growth prospects of the world's second largest economy.

"Under the circumstances, easing monetary conditions to support demand and allowing the currency to absorb the shock of the trade war are the right policy choices".

A Nasdaq.com article points out that it could be a "one-off" as Chinese exporters were rushing to get shipments out before tariffs went into effect during the first week in July. However, Nikkel reported that the Eastern nation will tariff 25 percent of energy commodities such as crude oil.

The WTO faces collapse after the United States told the organisation last week that the "reckoning" over China's unfair trade policies is urgent and is too big for the WTO to handle. The Trump administration on Monday, July 16, 2018, brought cases against China, the European Union, Canada, Mexico and Turkey at the World Trade Organization for retaliating against American tariffs on imported steel and aluminum.

As Mr. deLisle read the moves, Mr. Trump expects the other countries to step forward and negotiate with him. The products are produced in the People's Republic of China, an authoritarian Maoist communist world power.

The agreement was reached during the 20th China-EU leaders' meeting.

Kudlow said on Wednesday that Xi was "holding the game up".

China firmly believes that the authority and effectiveness of the multilateral trading system can be protected only by adhering to the worldwide rules in the spirit of contract, Hua said. Eight trading partners - China, India, the EU, Canada, Mexico, Norway, Russia and Switzerland - have so far filed complaints to the WTO against the United States steel and aluminium tariffs.

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