With rising costs at home and hostile peers abroad, China’s trade troubles set to stay
Gloomy prognosis from commerce ministry follows threat of ‘border tax’ from US president-elect Donald Trump
Rising protectionism and sluggish external demand will weigh on China’s trade this year, the Ministry of Commerce warned on Thursday, hours after US president-elect Donald Trump raised the prospect of a “border tax” under his administration.
While China’s trade ministry didn’t respond directly to Trump’s comments, Sun Jiwen, a spokesman for the Ministry of Commerce, painted a dark picture for the country’s US$2 trillion export machine on Wednesday, citing rising costs at home and hostilities abroad.
“In 2017, the trade situation remains complicated and severe. External demand is weak, trade protectionism is exacerbating, the unstable and uncertain factors are increasing, and downward pressure on trade is piling up,” Sun said.
He also said China had been fulfilling its duties as a World Trade Organisation member in the last 15 years, disputing allegations in a report by the US Trade Representative to Congress.
“It’s normal for China and the US to have trade disputes,” Sun said, but added that any differences should be solved through dialogue.