Tariffs on Chinese goods worth US $ 34 billion coming into the United States will come into effect on July 6. The enactment of this tariff will be the concrete impact of trade fair between the two largest economies of the world. The United States has imposed tariffs on Chinese goods and China itself has pledged to reciprocate on the same day. But the 12 hour time difference puts China first to impose tariffs on US goods.
"Our equivalent and equivalent step means that if the United States starts on July 6, we start on July 6. The timing of the execution for all policies starts at midnight," said a related source who declined to be identified, as reported by Reuters, July 4, 2018.
Earlier in a daily news briefing, Chinese Foreign Ministry spokesman Lu Kang said China was ready to act, although it did not confirm the Chinese tariff date could begin.
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"China has made preparations as long as the United States issues so-called tariff lists, China will take the necessary steps to protect its legitimate interests," Lu said.
US companies ranging from livestock, soybeans, whiskey to automakers like Ford and Tesla will suffer losses if China takes revenge. The Chinese list is designed to inflict pain on US farmers and other groups important to the political base of President Donald Trump.
The trade war also threatens major Chinese companies such as China Mobile which will face obstacles in the US market. A US agent under the Ministry of Trade recommends not to grant operational permission to China's largest telecom operator, due to the national security risks that can be caused by the state-run company.
Lu on Tuesday called the warning "a" baseless and irrational speculation, "stemming from the Cold War mentality.
"We hope the US will provide an equivalent field for investment and operations of Chinese companies in the United States and do something conducive to mutual trust," Lu said.
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China's stock market has fallen nearly 10 percent in recent weeks amid fears of a trade war, while its currency has fallen sharply against the US dollar.
In comments on Tuesday, July 3, Chinese central bank governor Yi Gang said the shrinking of 3 percent yuan over the past two weeks reflects the strengthening of the US dollar and the effects of external uncertainty. The yuan is at its lowest point against the dollar since December. Nonetheless, Yi says the financial risks are under control.
Trump has accused China of unfairly acquiring US technology through coercion and theft and restricting market access to US financial and technology firms. This charge is immediately denied by China.
China accused the United States of carrying out protectionism, such as its treatment of Chinese companies China Mobile and telecom equipment maker ZTE, which closed in April after the Commerce Department temporarily banned US chip purchases.
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