CNN – Business

Stocks in Asia sink as Trump ups the stakes in China trade fight

Stocks in Asia sink as Trump ups the stakes in China trade fight

HONG KONG (CNNMoney) - Chinese stock markets fell sharply on Tuesday as the trade clash between Washington and Beijing intensified.The Shanghai Composite closed nearly 4% lower, and Hong Kong's Han ... Continue Reading
Trump threatens China with new tariffs on another $200 billion of goods

Trump threatens China with new tariffs on another $200 billion of goods

NEW YORK (CNNMoney) - President Donald Trump just raised the stakes in the fight with China over trade.

The White House said Monday evening that if China goes through with its promise to retaliate against the US tariffs announced last week, the United States will impose tariffs on an additional $200 billion worth of Chinese goods.

"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States," Trump said in a statement.

The Trump administration said Friday that it will impose a 25% tariff on $50 billion of Chinese exports. China, claiming the United States had "launched a trade war," retaliated almost immediately, outlining its own tariffs on US goods worth $50 billion.

The escalating conflict between the world's two largest economies has rattled markets and companies, which fear disruption to their global supply chains.

The Chinese Commerce Ministry reacted quickly to Trump's announcement, accusing the United States of "extreme pressure and extortionist behavior" and warning it would "strike back hard."

The Trump tariffs, which the US government says are punishment for intellectual property theft, will be enacted in two waves. More than 800 exports, about $34 billion worth, will be subject to tariffs starting July 6. Another 280 or so still need to undergo a public comment period, and will take effect later.

Trump said Monday that China's response "indicates its determination to keep the United States at a permanent and unfair disadvantage." China's tariffs would target agricultural products, cars and seafood, among other items.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," he said. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong."

He directed Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional 10% tariffs, which would be enacted "if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced."

In a separate statement, Lighthizer said that he supported Trump's action and that his agency "is preparing the proposed tariffs to offset China's action."

The planned new wave of tariffs would have to go through a similar process of public consultation and comment as the earlier ones before taking effect.

"If the United States loses its senses and comes up with a new list, China will be forced to strike back hard, and launch comprehensive measures that match the US move in quantity and quality," the Chinese Commerce Ministry said in a statement Tuesday.

But Beijing faces challenges in retaliating directly: China ships far more goods to the United States ($505 billion last year, according to US figures) than come back in the opposite direction ($130 billion).

To respond to Trump's threat to impose tariffs on as much as $250 billion worth of Chinese goods, Beijing would have to find other ways to respond.

Analysts say the Chinese government could target trade in services between the two countries rather than physical products. That means things like tourism and education, industries from which the United States benefits a lot more than China does.

Beijing could also seek to make life difficult for big US companies that rely on the Chinese market for a big chunk of their revenue. It showed a willingness to do that to South Korean businesses last year during a period of tension between the two Asian countries.

Top US brands such as Apple, GM and Boeing generate large amounts of sales in China.

In an interview with CNN earlier this month, Apple CEO Tim Cook said he didn't expect a full-blown trade war to break out and dismissed the notion that iPhones, which are assembled in China, would end up subject to tariffs.

But analysts say it's unclear which government will back down in the confrontation, predicting both economies will be able to withstand the initial waves of tariffs without much impact on overall growth.

"Neither side will be brought to its knees -- which is one reason to think the trade dispute could drag on," research firm Capital Economics said in a note to clients on Friday. "For China's part, its leaders will be determined not to be seen to back down to foreign pressure."

-- Steven Jiang contributed to this report.

ZTE stock drops 25% after US Senate pushes to keep ban

ZTE stock drops 25% after US Senate pushes to keep ban

HONG KONG (CNNMoney) - Shares in Chinese tech firm ZTE plummeted more than 25% Tuesday after US lawmakers sought to uphold a ban that prevents the company from buying crucial American parts.The Hon ... Continue Reading
The Diamond and Silk show goes to Washington

The Diamond and Silk show goes to Washington

NEW YORK (CNNMoney) - "Freedom," said Bob Goodlatte, the House Judiciary Committee chairman, quoting President Ronald Reagan as he began a hearing Thursday morning, "is never more than one generation ... Continue Reading
iQiyi, China's answer to Netflix, plunges in Wall Street debut

iQiyi, China's answer to Netflix, plunges in Wall Street debut

HONG KONG (CNNMoney) - The Netflix of China had a tough first day on Wall Street. Shares in video streaming platform iQiyi tanked on their Nasdaq debut Thursday, closing down more than 13%. The ... Continue Reading
The trade crackdown Trump always promised

The trade crackdown Trump always promised

NEW YORK (CNNMoney) - Does the Trump administration want a trade war with its closest allies? To see the way it has bullied and threatened close allies with steel and aluminum tariffs, one might concl ... Continue Reading
iQiyi, the Netflix of China, is going public in the US

iQiyi, the Netflix of China, is going public in the US

HONG KONG (CNNMoney) - The Netflix of China is ready for Wall Street. Video streaming site iQiyi is getting ready for an IPO on the Nasdaq under the stock ticker "IQ." The company filed paperwork l ... Continue Reading

Playlist