Exporters scrambled to replace lost orders after U.S. President Donald Trump raised tariffs in July on $50 billion of Chinese imports. Waves of job losses loom over factory towns. But Chinese leaders expressed confidence in their $12 trillion-a-year economy and refused to budge on tactics they see as a path to prosperity and global influence.
Economists, political analysts and business groups say China's leaders appear no more likely to back down after Trump approved penalties Monday on $200 billion more of Chinese goods.
The chairman of the American Chamber of Commerce in China, William Zarit, said Tuesday in a statement, "Contrary to views in Washington, China can — and will — dig its heels in and we are not optimistic about the prospect for a resolution in the short term."
Mats Harborn, president of European Union Chamber of Commerce in China, speaks about trade war as he released a document titled: "European Business in China – Position Paper" at a hotel in Beijing, Tuesday, Sept. 18, 2018. China said Tuesday it will take "counter-measures" to U.S. President Donald Trump's decision to raise tariffs on $200 billion of Chinese imports and an American business group warned a "downward spiral" in their trade battle appears certain. American companies and trading partners including the European Union and Japan have longstanding complaints about Chinese market barriers and industrial policy. But they object to Trump's tactics and warn the dispute could chill global economic growth and undermine international trade regulation. (AP PhotoAndy Wong)