The Latest: Markets roiled by latest China trade response

Zhu Guangyao
The Associated Press

BEIJING (AP) — The Latest on U.S.-China trade tensions (all times local):

5:50 p.m.

European stock markets have fallen sharply after China announced a series of tariffs on U.S. goods, stoking fears that the two countries were on the brink of a full-scale trade war.

Among the region’s major indexes, Germany’s DAX was down 1.2 percent while the FTSE 100 index fell 0.4 percent, in the wake of China’s decision to raise tariffs on $50 billion of U.S. goods including soybeans, aircraft and automobiles. China was responding to Washington’s equivalent duties on Chinese goods.

Joshua Mahony, market analyst at IG, said it’s “no surprise that we are seeing traders flock to safe havens in response, with gold and the yen both sharply higher throughout the morning’s trade.”

Gold, for example, was up 0.8 percent at $1,347.40 an ounce.

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5:30 p.m.

A senior Chinese finance official has warned that attempts by foreign countries to pressure China on trade will fail, striking a firm note as Beijing announced proposed tariff hikes on American goods in response to planned U.S. duties.

Zhu Guangyao, China’s deputy finance minister, said Wednesday that Beijing hopes both sides can work together in a constructive manner, “instead of acting in a willful way.”

He made the comment at a briefing to discuss China’s plans to impose a 25 percent tariff hike on U.S. soybeans, autos, aircraft and other goods valued at $50 billion.

Zhu said that China never gives in to outside pressure and that “pressure from the outside will only urge and encourage the Chinese people to work even harder” and to innovate and develop.

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5:15 p.m.

A senior official with China’s Commerce Ministry says Beijing will keep the door to negotiations with the U.S. open, after announcing a plan to impose tariffs on $50 billion worth of U.S. goods in response to proposed U.S. tariffs.

Wang Shouwen, a vice minister of Commerce, said Wednesday at a briefing with reporters that Beijing doesn’t want a trade war but will fight one if forced to.

Wang said Beijing was willing to resolve these disputes with the U.S. through dialogue on the basis of “mutual respect and mutual benefit.”

Wang said: “If anyone wants to fight, we’ll be there with him, if they want to negotiate, the door is open.”

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4:20 p.m.

China has raised tariffs on $50 billion of U.S. goods including soybeans, aircraft and automobiles in response to Washington’s increased duties on Chinese goods in a technology dispute.

The Commerce Ministry on Wednesday criticized the U.S. move as a violation of global trade rules and said China was acting to protect its “legitimate rights and interests.”

It said a 25 percent tariff would be imposed and the date the charges will take effect would be announced later.

The dispute stems from U.S. complaints that Beijing pressures foreign companies to hand over technology in return for market access.

Companies and investors worry the conflict could dampen worldwide commerce and set back the global economic recovery.

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