China is pushing for US cooperation as Trump’s trade threat looms

BEIJING – China emphasized the need for closer cooperation with the US, a day after it became clear that newly-elected President Donald Trump would become the next leader of the White House.

“On the basis of mutual respect, peaceful coexistence and win-win cooperation, the Chinese side is willing to increase communication with the US, expand cooperation and resolve differences,” said He Yongqian, spokesman for the Chinese Ministry of Commerce, told reporters on Thursday. Mandarin, according to a CNBC translation.

She was responding to a question about China’s positions and planned countermeasures, given the potential for higher U.S. tariffs and restrictions on high technology.

“Together [we can] To push China-US economic and trade relations in a stable, sound and sustainable direction for the benefit of both countries and the world,” the trade spokesperson said.

Her comments echoed those of Chinese President Xi Jinping, who noted the benefits of bilateral cooperation earlier in the day in a congratulatory message to TrumpThis is evident from a readout from the Ministry of Foreign Affairs.

Washington became tougher on Beijing during Trump’s first four-year term, which began in 2017. This year, the president-elect threatened additional tariffs on Chinese goods as he campaigned for his second term.

Yue Su, chief economist at the Economist Intelligence Unit, said Trump would likely impose such tariffs in the first half of next year. She added that the Whitote House leader could speed up the process by appealing to the International Emergency Act on the Economic Powers or Section 122 of the Commerce Act of 1974, which allows the President to impose tariffs up to 15% in response to a serious balance of payments deficit.

Other analysts are less concerned about a significant increase in US tariffs on China.

“Trump’s current tariff proposal is likely the worst-case scenario,” David Chao, Global Market Strategist, Asia Pacific (excluding Japan) at Invesco, said in a note on Thursday. “I suspect the new administration will refrain from imposing these tariffs to gain concessions, whether that means increased purchases of U.S. soybeans or even geopolitical soybeans.”

He added: “Moreover, I don’t think Trump’s proposed 60% tariff policy on China will have a significant impact [multinational corporations’] trust or sentiment.”

Chao nevertheless said a potential 10% tariff on all exports to the US would likely have a bigger impact, weakening global demand and hitting China and the rest of Asia.