Published: Tue, August 15, 2017
Global | By Maureen Mccoy

No winners in US-China trade war, warns Beijing

No winners in US-China trade war, warns Beijing

China is the country's closest ally, but has been angered by its missile tests and repeatedly pressured and berated by President Trump, who wants it to be far tougher on its neighbour.

China has appointed a new special envoy for Pyongyang who will be tasked with defusing the crisis in the Korean peninsula amid a war of words between the United States and North Korea, the mainland's foreign ministry said.

An administration official contended that the possible investigation was unrelated to the showdown with North Korea.

The China Daily said it was unfair for Trump to put the burden on China for dissuading Pyongyang from its actions. Such an investigation easily could last a year.

"If the US uses Section 301 (of the Trade Act) to pressure China, countries in China's export chain, including the US, Japan and South Korea, would be affected", said Liu Ligang, Chief Economist for China at Citigroup.

China will halt import of coal, iron, iron ore and seafood from its ally North Korea from tomorrow, as it implements new United Nations sanctions amid US President Donald Trump's warnings to Pyongyang over its nuclear programme.

Trump signed the memo on Monday and signaled that his latest order was "just the beginning".

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The clothes made in North Korea are labelled "Made in China" and exported across the world, they said. "And I think China will do a lot more".

China, the isolated North's main trading partner, has been reluctant to push leader Kim Jong-un's regime too hard for fear it might collapse.

The ban, to come into force on Tuesday and in accordance with the sanctions approved by the UN Security Council on August 5, excludes imports authorised before that date and which will be allowed to enter Chinese territory until September 5.

"After that, entry of these goods will be prohibited", said an agency statement.

China has appointed a new special envoy for the North Korean standoff, the foreign ministry said on Monday, a relatively low-profile diplomat now in charge of Asian affairs, amid renewed global concern over China's nuclear-armed neighbor.

Regional tensions have mushroomed in the past week as Trump warned North Korea it would face "fire and fury" if it attacked the United States while the North threatened to test-fire its missiles towards the U.S. Pacific island of Guam. Trump made addressing the USA trade deficit with China a centerpiece of his campaign previous year and has suggested raising tariffs on goods from China.

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