China firms facing issues over trade war with US, Latest Business News - The New Paper

China firms facing issues over trade war with US

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BEIJING Chinese companies are facing many difficulties due to trade frictions, Chinese Commerce Minister Zhong Shan said yesterday.

The United States and China have been locked in an escalating trade war for over a year.

They have levied punitive duties on hundreds of billions of dollars of each other's goods, roiling financial markets and threatening global growth.

"Trade faces unprecedented challenges," Mr Zhong told a news conference in Beijing.

"These challenges are both external and internal."

A new round of high-level talks between the world's two largest economies is expected in Washington on Oct 10 to 11, led from the Chinese side by President Xi Jinping's top economic adviser, Vice-Premier Liu He.

China will expand imports, and measures to stabilise trade will yield positive results, Mr Zhong added, without giving details.

The Trump administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from US stock exchanges.

The Chinese government's top diplomat said on Friday that tariffs and trade disputes could plunge the world into recession and Beijing was committed to resolving them in a "calm, rational and cooperative manner".

The trade war has taken its toll on the Chinese economy.

China's exports unexpectedly fell in August as shipments to the US slowed sharply, pointing to further weakness in the world's second largest economy and underlining a pressing need for more stimulus.

Beijing is widely expected to announce more support measures in coming months to avert the risk of a sharper economic slowdown as the US ratchets up trade pressure. - REUTERS