MNI: China Rallies Nation for 'Unprecedented' Trump Trade War

     BEIJING (MNI) - China's government is telling its people to buckle up for a

potentially rough trade showdown with the U.S., suggesting it will resort to all

means to "inflict maximum damages" to the Donald Trump administration. 

     In response to the White House's latest threat to levy 10% tariffs on

another USD200 billion of Chinese goods, the Ministry of Commerce, in a tersely

crafted statement, said China will take "comprehensive measures" combining both

quantitative and qualitative measures. 

     Some analysts speculate that given China's annual total purchases from the

U.S. add up to only about USD130 billion, China is likely to raise tariff rates

to prohibitively high levels, such as 50%. It may also make more difficult for

U.S. companies to operate in China, tightening non tariff-barriers.  

     China's official media are also helping galvanize public support for the

government.

     A post of a WeChat blog identified as "Playing music to a cow," a phase

that derides a foolhardy person who cannot be reasoned with, was shared by the

official Xinhua News Agency on its website and its own WeChat account. 

     China stands united and the people are facing "the enemy" with rage and

supporting the countermeasures by the government, the post said.

     --NORTH KOREA FACTOR

     Many Chinese citizens echo support for the government on private online

chats. "Fight to the end, said one independent commodities trader. "We follow

the Party's lead," said an employee with a state-owned agricultural importer. 

     China may also seek to undermine U.S. strategic interests, such as

complicate efforts to restrain North Korea, or at least send a message to exert

its influence. 

     In an unusual move, Chinese state media announced a two-day visit to

Beijing starting today by North Korean leader Kim Jong Un. Two previous visits

to China in the last three months by Kim were only confirmed after he had left.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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