US will not be left unscathed in a trade war
"Pull back from the brink" is the stern advice China gave to the US administration after President Donald Trump signed an executive memorandum on Thursday imposing restrictive tariffs of up to $60 billion on Chinese imports and restricting Chinese investments in the US.
China's response, although measured, signals the escalation of a trade dispute triggered by the protectionist-minded US administration prone to taking unilateral decisions, with the Chinese embassy in Washington warning that "China would fight to the end to defend its own legitimate interests with all necessary measures".
That China's reciprocal measures will be taken in two stages leaves room for further negotiation and dialogue to resolve the trade disputes between the world's two largest economies, in order to avoid a trade war, which would disrupt the on-going recovery of the global economy.
