By Antoni Slodkowski
BEIJING () -China said on Saturday "the market has spoken" in rejecting U.S. President Donald Trump's tariffs, and called on Washington for "equal-footed consultation" after global markets plunged in reaction to the trade levies that drew Chinese retaliation.
The state-operated Xinhua news agency likewise released the Chinese government’s position, stating that the U.S. ought to “cease employing tariffs as a tool to curb China’s economic and commercial growth.”
Hong Kong's Financial Secretary Paul Chan informed the public broadcaster RTHK that the region would not enforce distinct retaliatory measures, emphasizing the necessity for the city to stay "open and free."
"As the market has indicated," Chinese foreign ministry spokesman Guo Jiakun stated in a Facebook posting on Saturday. Additionally, he shared an image depicting the declines observed in U.S. markets on Friday.
Trump introduced additional 34% tariffs on Chinese goods as part of steep levies imposed on most U.S. trade partners, bringing the total duties on China this year to 54%.
Trump also shut down a trade loophole permitting low-value shipments from China to enter the U.S. without duties.
This led to a counteraction from China on Friday, imposing additional tariffs of 34% on all U.S. products and restrictions on exports of certain rare earth materials, intensifying the trade conflict between the globe’s two biggest economic powers.
The global stock market experienced significant declines after China responded with countermeasures and President Trump stated on Friday that he had no intention of altering his stance. This extended the steep drops seen earlier in the week following Trump’s initial tariff announcements, resulting in the largest downturns since the start of the pandemic. Over the week, the S&P 500 index fell by 9%.
"It is now time for the US to cease engaging in harmful practices and address disputes with trade partners through balanced negotiations," Guo penned in English on Facebook.
In an independent statement released via the state-operated Xinhua News Agency, the Chinese government appealed to the U.S., saying: "Cease employing tariffs as a tool to curb China’s economic and commercial growth, and desist from impeding the rightful developmental privileges of the Chinese populace."
"The Chinese government remains committed to taking decisive actions to protect its sovereignty, security, and developmental interests," as stated officially.
Washington "significantly weakens the rules-based multilateral trading system and substantially destabilizes the global economic order," it further noted.
On Saturday morning, numerous trade associations spanning sectors such as metal and textile trading, along with those focused on electronics, released statements denouncing the new tariffs.
China's trade group for food product merchants urged "the country's food and agriculture import-export sector to join forces and enhance collaboration to collectively tap into both local and international markets."
Chan from Hong Kong stated their strong opposition to Trump's moves and affirmed they would remain "free and open" going forward.
"As an open conduit for unrestricted capital movement and functioning like a free port remain our strengths, this will not alter," Chan stated to public broadcaster RTHK.
"Our foundation lies in the rule-driven global trade system," he stated.
(Antoni Slodkowski and Qiaoyi Li reported this; Edited by Edmund Klamann and Barbara Lewis)