BEIJING (Halbeeg News) – Chinese government increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of “unreliable” foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei.
Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal, with American negotiators accusing Chinese negotiators of reneging on previous commitments.
China’s commerce ministry said Friday that it would release its list of “unreliable entities” that break their commercial contracts and stop supplying Chinese firms.
Commerce ministry said it would roll out the specific measures against companies on the list shortly, noting foreign firms that break contracts, cut off supplies or take other.
China’s state-owned tabloid the Global Times said the new list would “work as deterrent forming a protective barrier around Chinese companies”.
“China is ready to wage a protracted economic and trade war with the United States,” the nationalist paper said in an editorial.
Former Chinese officials warned Friday that the trade war could last decades.
“It is quite clear now that this is no longer a trade dispute and will extend much more broadly to punitive economic measures that each side can inflict upon each other,” said Christopher Balding, a China expert at the Fulbright University Vietnam, adding it was reasonable to expect further escalation by each side.
“It is quite possible there will be significant collateral damage here,” Balding said.
Speaking at a defense and security conference in Singapore on Saturday, the acting US defense secretary said Huawei was “too close” to Beijing, creating “too much risk”.
“The integration of civilian businesses with the military is too close. China has national policies and laws where data is required to be shared,” Patrick Shanahan told the forum.
US President Donald Trump more than doubled punitive tariffs on $200 billion in Chinese goods to 25 percent last month and launched the process to hit nearly all remaining imports from the Asian giant.
China responded by increasing tariffs from five percent to 25 percent on 5,410 American products Saturday, worth $60 billion in trade.
The list includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric, and toys.
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