“China doesn’t hope to be in a trade war, but is not afraid of engaging in one,” the Chinese commerce ministry responded in a statement. The inevitable fall in demand from a full-blown trade war would spell trouble for all the economies supplying the United States and China. Trump, however, appears intent on fulfilling election campaign promises to reduce the record US trade deficit with China. A commentary published by the official Xinhua news agency said the United States had adopted a “Cold War mentality”, and “panic” over China’s economic rise was driving Washington’s confrontational approach. “With the restrained response, China hopes Trump can realize his errors and mend his ways,” said Xu Hongcai, deputy chief economist at the China Centre for International Economic Exchanges, a Beijing think tank.

Source: bd News24 March 23, 2018 07:07 UTC