China's latest tariff threat brings clothing into the fray

Media playback is unsupported on your device                  Media caption The'danger of a US-China trade war

Chinese state media are reacting to U.S. President Donald Trump's trade actions against China in diverse ways. The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods.

For example, he claimed that China was financing advertisements to convince Americans to stop Trump's trade agenda.

"But one thing is sure: if the USA imposes tariffs on Chinese imports following an order of $60 billion, $200 billion, or even $500 billion, many Chinese companies will go bankrupt", he said.

Mr Trump continued his focus on tariffs on Sunday morning, tweeting that the duties are working "big time" and that imported goods should be taxed or made in the US.

The U.S. tariffs, either in place or threatened, add up to nearly half of the value of goods it imported from China previous year. It is much more rational compared with the 25 percent tariff hikes threatened by the United States. which is a trade "stick", " said Li Yong, a senior research fellow at the China Association of International Trade.

Another reason China is anxious is because Washington's actions have come when the domestic Chinese economy is going through a bad time.

According to new data, the USA trade deficit is growing despite Trump's tariffs.

The response follows the Trump administration's proposal of a 25-percent tariff on $200 billion worth of Chinese imports. That covers more than two-thirds of the value of China's imports from the USA, but it excludes products such as big aeroplanes and some computer chips, which China struggles to produce domestically. That's a negligible amount for China, which imported 17 million tons total previous year, according to the US Census Bureau. While denouncing the USA leader's actions, Beijing is also using its media to calm markets and express concern about the impact on the Chinese economy.

Saying it was "forced to act", Beijing cast the move as a response to a US threat, reported last week in The Washington Post, to raise the proposed tariff rate on $200 billion worth of Chinese goods from 10 percent to 25 percent.

Mr Trump's senior advisers, particularly White House National Economic Council Director Larry Kudlow and Treasury Secretary Steven Mnuchin, have said the White House's ultimate goal is to remove tariffs and trade barriers in a way that makes "free and fair trade", but Mr Trump's message on Saturday evening was one of protectionism and economic restrictions, not open markets.

An all-out trade war could overshadow Trump's otherwise solid economic record of low unemployment and stimulus-fueled growth.

"The trade war is a tactic by Trump, but if it eventually evolves into a strategic confrontation, the result will undoubtedly be disastrous", he said.

Cheniere, Tellurian Inc. and other LNG developers have been courting utilities and state-backed companies in China to fund construction of more terminals to ship the super-chilled form of the gas. The People's Bank of China stepped in to support the yuan yesterday after the currency slid to the lowest in more than year.

Beijing's earlier round of tariffs appeared created to minimize the effect on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers. Yet while the Chinese public and private sectors invest in one another based on the principles of the cyclically prosperous market socialist model, the USA is now being forced to subsidise (aka pay) its own farmers whose industry has been partly stagnated during the early stages of the trade war on China.

A piece in the Global Times, a tabloid run by the People's Daily, described the retaliatory measures as "rational" and insisted China "will not rush to compete with USA numbers".

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