MNI POLICY: China State Media Blast US, Appeal to Nationalism

     BEIJING (MNI) - China's state media attempted to shore up public support

for the government's approach to the trade war by appealing to nationalism and

blasted the U.S. for raising tariffs and escalating tensions.

     Washington's apparent belief that China wouldn't be able to withstand the

tariff hikes is a misjudgment and a self-deception, said Global Times in an

editorial Monday. It is "19th century mindset" to treat China as the old China

that allowed itself to be butchered by others at will, the official Xinhua News

Agency said in a commentary. 

     The U.S. moves betrayed its anxiety and China should respond with calmness,

Global Times said. 

     People's Daily, the official mouthpiece of the Chinese Communist Party,

touted China's ability to withstand "extreme utilitarianism" moves by the U.S.

and criticized it for wasting earlier trade talks while damaging its own

credibility.

     The volatile China-U.S. trade relations have limited impact on the Chinese

economy, as domestic demand is the main driver for growth, with data showing

consumption had contributed to 76.2% of growth last year, the daily said in a

commentary on Monday widely reposted in China's social media.

     "No challenge can stop the pace of China's progress," the newspaper said.

     U.S. retailers, manufacturers and consumers have had to pay for 90% of the

additional tariffs that the U.S government levied on Chinese exports since

August 2018, Xinhua said Monday citing research by the Institute of World

Economics and Politics, a think tank affiliated with Chinese Academy of Social

Sciences. 

     The U.S. is more reliant on Chinese goods and raising tariffs pushes its

domestic prices higher, Xinhua said citing a research by the Chinese Academy of

International Trade and Economic Cooperation, backed by the Ministry of

Commerce. In the latest tariff hikes on total 6,081 items valued $200 billion,

there are 1,150 items for which the U.S. depends on China supplying more than

half of its imports. However, there are only 124 items with Chinese exports

mostly destined for the U.S. market, Xinhua said citing the research.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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

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