DHARAMSALA, July 31: Chinese state Media has predicted in a rare and candid commentary that Chinese firms will go bankrupt and private companies will be worst-hit by the wrath of the trade war with the US.
“Many Chinese firms will go bankrupt and private companies will be worst hit by the escalating trade war between US and China,” said a commentary with a rare candid assessment by the official newspaper of China’s courts, the state-run People’s Court Daily.
“It is unpredictable how [the U.S.–China trade war] will develop and to what extent. But one thing is certain. If the United States imposes high tariffs on Chinese products imported into the United States according to the scale of $60 billion, $200 billion, and $500 billion, many enterprises in China will face the predicament of becoming bankrupt,” Du Wanhua, a senior judge at China’s highest court, the Supreme People’s Court has said in a commentary dated July 25, reports The Epoch Times.
The communist regime has reportedly prohibited the media coverage on trade war and instructed the state media journalists to report on Chinese company news with caution and not to stir up negative emotions or “reveal the cards” of Chinese importers.
The July 25, commentary indicated that despite wanting to keep its war strategy under wraps, Beijing is beginning to worry about the potential impact of the trade war on society and the economy as they begin to feel the effects of the trade spat, the report added.
The US-China trade war heated up in July as the US and China geared up for an all-out trade war. US President Donald Trump imposed tariffs on $34 billion worth of Chinese goods on July 6, and the Chinese Communist Party retaliated by doing the same thing to American goods.
“The initial tariffs that President asked us to put in place were proportionate and responsive to forced technology transfer and intellectual property theft by Chinese,” US Trade Representative Robert Lighthizer has said defending President Trump’s additional China trade action.
The US states that the Chinese regime was cheating and the tariffs are aimed to balance that out. But with the Chinese regime putting its own tariffs on the American goods, the US announced another tariff on Chinese goods worth $200 billion on July 10, and in addition to that, President Trump further said that his administration is ready to impose tariffs on all Chinese products, worth roughly $505 billion, exported to the United States.
Though the Chinese regime has insisted it will carry out anti-retaliation measures, it stopped short of disclosing anything specific, the report noted.
In order for China to retaliate again with same tariffs, they will first have to buy more American goods than before because China doesn’t even buy $200 billion worth of American goods in a year.