US President Donald Trump’s trade war with China entered new territory on Sunday as his next round of tariffs took effect, changing the rules of trade in ways that have no recent historic precedent and driving the world’s two largest economies further apart.
The US military operation comes amid an increasingly bitter trade war between China and the United States that sharply escalated on Friday, with both sides levelling more tariffs on each other's exports.
This marks at least the second time China has denied a request by the United States this month, having earlier rejected a request for two US Navy ships to visit Hong Kong, as the political crisis in the former British colony deepened.
Shao Yuanming said that China would defend its sovereignty at any cost should anyone try to separate Taiwan from its territory. It views the self-ruled island as a wayward province and has not ruled out the use of force to return it to the fold.
If this trade war continues over a longer horizon, it could even result in shift of production bases and restructuring of global supply chains. Chinese firms are already moving production to their plants in other countries. India figures in the list of such probables.
Reuters reported exclusively on Wednesday that the two sides are starting to sketch out an agreement on structural issues, drafting language for six memorandums of understanding on proposed Chinese reforms.
Speaking at a forum in the eastern city of Qingdao, following a major naval parade marking 70 years since the founding of the Chinese navy, China's navy chief Shen Jinlong said everyone needed to follow the rules and "safeguard good order".