The Trump administration accused China of hijacking intellectual property and pursuing industrial policies that threaten US economic and national security in a scathing report released by the White House as trade tensions with Beijing escalate.
The report, posted late on Tuesday in Washington, claims that China’s spectacular economic growth “has been achieved in significant part through aggressive acts, policies and practices that fall outside of global norms and rules.”
“Given the size of China's economy and the extent of its market-distorting policies, China's economic aggression now threatens not only the US economy, but also the global economy as a whole,” according to the 35—page document.
The White House report is the latest salvo in the trade war between the world’s two largest economies. Its release came a day after President Donald Trump ordered US trade officials to consider imposing tariffs on an additional $200 billion in Chinese imports — with another $200 billion to be added if Beijing retaliates.
On the other side of the Pacific, economists are starting to run the numbers on what kind of dent to growth such actions will have on China’s economy. Bloomberg Economics' Tom Orlik and Fielding Chen write that the impact of decreased exports and lower manufacturing investment could add up to a 0.5 per cent blow to gross domestic product.
A pull back in Chinese investment in the US is already evident.Research from Rhodium showed Chinese companies completed acquisitions and greenfield investments worth $1.8 billion in the first half.
Research from Rhodium Group showed Chinese companies completed acquisitions and greenfield investments worth $1.8 billion in the first half, representing a drop of more than 90 per cent from the same period in 2017 and the lowest level in seven years.
The trade skirmishes are not holding back the US economy just yet, which is booming this quarter as tax cuts power consumers and businesses.
US says new trade deals will be announced ‘rapidly’
President Donald Trump said that he expects to announce new trade deals with unspecified countries “rapidly,” as markets fluctuate in the wake of his escalating trade war with China.
READ MORE: Donald Trump's tariffs could deliver sizable hit to China's economy
Trump made the remark as he met with lawmakers to discuss US penalties against Chinese telecom manufacturer ZTE. Earlier, central bankers meeting in Portugal including Federal Reserve Chairman Jerome Powell expressed concern about damage to the global economy from trade tensions. “Changes in trade policy could cause us to have to question the outlook,” Powell said.