US's trade, IP war with China will hurt both countries: Vice Premier Liu He

Chinese officials and state media said the country will defend itself in a trade war, warning that President Donald Trump’s tariff plans could backfire on the United States.

Vice Premier Liu He told US Treasury Secretary Steven Mnuchin in a phone call that Washington’s investigation into alleged Chinese infringement of US intellectual property violates international rules and will harm the interests of both countries, the official Xinhua News reported on Saturday.

“China is prepared and has the ability to defend its national interests,” Liu was cited as saying. Liu, top economic counselor to President Xi Jinping, urged both countries to work together and ensure the overall stability of China-US trade and economic ties, according to Xinhua.

Trump on Friday outlined fresh tariffs on $50 billion of Chinese imports and directed Mnuchin to propose new investment restrictions on Chinese companies within 60 days to safeguard strategic technologies. China unveiled tariffs on $3 billion of US imports in response to steel and aluminum duties ordered by Trump earlier this month and indicated it is considering further steps, including possibly scaling back purchases of Treasuries.

American corporate giants such as Apple, Boeing and Intel rake in huge revenues from China each year and will see their global interests damaged in a trade war, according to a commentary carried on the front page of the Saturday overseas edition of the People’s Daily, the official mouthpiece of the Chinese Communist Party.

Lou Jiwei, chairman of the National Council for Social Security Fund, said so far China’s response to the Trump administration’s tariffs has not hit the US “where it hurts.”

“If I were still in the government, I would be hitting soybeans, automobiles, and airplanes,” the former finance minister said at the China Development Forum on Saturday.