China’s trade moves against US show it’s ready to fight back but willing to make a deal

Observers said China’s retaliatory moves in response to US tariffs showed Beijing’s readiness to face escalating trade tensions along with its desire to achieve more at the negotiation table.

Analysts said that compared with the immediate relief the US granted to its neighbours by delaying tariffs on Mexican and Canadian goods, Washington might take a hardline approach to Beijing, its biggest rival.

On Tuesday, Beijing announced it would impose additional tariffs of 10 to 15 per cent on some US products such as coal, petroleum, agricultural equipment and high-emission vehicles from February 10.

Separately, it launched an anti-monopoly investigation into US tech giant Google and put American clothing company PVH, which owns Calvin Klein, and biotechnology company Illumina on its unreliable entity list.

The measures were announced after US tariffs of 10 per cent on Chinese products took effect earlier on Tuesday.

The US levies on Chinese goods came into effect after US President Donald Trump suspended 25 per cent tariffs on Canada and Mexico on Monday.