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China Asks US Businesses for Help to Stop Trump's Trade War

China Asks US Businesses for Help to Stop Trump's Trade War

Oil markets stabilised on Monday after having lost around 2 per cent last Friday as concerns grew over the impact on global growth from an intensifying trade dispute between the United States and China, as well as increased U.S. drilling activity.

Xi's renewed pledges to open up the auto sector come after Trump on Monday criticized China on Twitter for maintaining 25 percent auto import tariffs compared to the United States' 2.5 percent duties, calling such a relationship with China not free trade but "stupid trade".

Mr Xi said Beijing will "significantly lower" tariffs on auto imports this year and ease restrictions on foreign ownership in the vehicle industry "as soon as possible". "Xi's apparent desire to balance out his country's worldwide payments is clearly great news for countries and companies selling goods to China".

Trump insists the US must stand up to China.

With tariffs on steel and aluminum imports, USA farm equipment manufacturers will pay more for steel and aluminum.

USA businesses seem inclined to back China's position, with many complaining the tariffs will make other countries more attractive to Chinese buyers.

Beijing responded in kind, saying it would impose tariffs on USA goods "until the end at any cost".

China's growing list of tariffs aimed at US exports could be enough to sink farmers in Iowa and other states, as they struggle to survive a five-year decline in the farm economy, mainly due to big crops and low prices.

Of the other products on China's tariff list, he predicted that duties on US chemicals will hurt Chinese businesses most, as they rely on imports for many raw materials, he said. "Under the current conditions, it is impossible for the two sides to have any negotiations on this issue".

Chinese state researchers and media talked down the likely impact of US trade measures on the world's second largest economy and described the Trump administration's posturing on trade as the product of an "anxiety disorder".

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The new White House economic adviser, Larry Kudlow, said Sunday that a "coalition of the willing" - including Canada, much of Europe and Australia - was being formed to pressure China and that the US would demand that the World Trade Organization, an arbiter of trade disputes, be stricter on Beijing.

It then got a significant boost after Mr Xi's keynote address to the Boao Forum, where he called for an upholding of the multilateral trade system and said dialogue was the way to resolve disputes, spurring gains on equity markets across Asia. "President Xi has ignited a rally in risk assets that might have some legs if the US can keep a lid on the protectionist rhetoric for a while", said Sean Callow, FX strategist for Westpac in Sydney.

Blackstone Executive Vice Chairman Tony James on the trade tensions between the US and China.

In a separate interview on "Fox News Sunday", Kudlow acknowledged "jitters" but insisted "we're not gonna to end up in a trade war".

Treasury Secretary Steve Mnuchin said on CBS' "Face the Nation" that he didn't expect the tariffs to have a "meaningful impact on the economy" even as he left the door open for disruption. The stock market fell more than 500 points Friday on worries over a trade war. "It's out of control", Trump said of the U.S-China imbalance. He declined to comment on the progress of any back-channel talks with Beijing.

Markets were also eyeing the situation in Syria after reports - denied by the Pentagon - that USA forces had struck a major air base there.

Still, White House adviser Peter Navarro, known as a hard-liner on trade, said the threat of tariffs is not merely a bargaining chip. United States intelligence officials say that North Korea could be just a few months away from successfully mounting a warhead on a missile that could reach the American mainland.

"We look forward to seeing these strategies elaborated, implemented and bearing fruit", said Lee, according to a transcript issued by his office.

China, which is America's largest foreign creditor and the No 2 overall owner of USA government bonds, also does not appear to be willing to give into the pressure.