If China responds to these $150 billion of threatened US tariffs in kind, the cumulative loss of GDP in 2018-19 could reach 0.3 percent in each economy with the US potentially loosing more than 300,000 jobs. Importantly though, these threatened tariffs will be subject to negotiation, and therefore shouldn't be considered as final.
Yang Jiechi, member of the Political Bureau of the Communist Party of China Central Committee and director of the Office of the Foreign Affairs Commission of the CPC Central Committee and Wang Yi, State Councilor and Foreign Minister,attended the ceremony.
The statement stressed the importance of following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and Xi thought on strengthening the military in order to carry out the military-civilian integration strategy.
In this context, we see two potential routes. The first assumes that similarly to the steel/aluminum tariffs saga, we will witness a gradual de-escalation of tensions once the parties have renegotiated trade terms－so that the final tariffs represent only a small fraction of the initial threats. The second route assumes we are on a slippery slope toward a trade war. Indeed, the recent Cabinet reshuffle in the US indicates a circle of presidential advisers who closely adhere to Trump's world view, raising the risks of an all-out trade war.
Therefore, the two sides should strictly abide by the principles established in the four important political documents between them, properly handle the sensitive issues related to the political foundation of bilateral relationship, fully implement the consensus of treating each other as a cooperative partner instead of a threat and make it a consensus of all circles of the Japanese society, Wang added.
He said that the Taiwan question is related to the fundamental interests of the Chinese nation, and he called on businesspeople from Taiwan to push for the peaceful development of cross-Straits relations.