WASHINGTON – Amidst reports that some 200 American firms are in talks ofmoving their units from China to India, US President Donald Trump on Mondaywarned his Chinese counterpart Xi Jinping that China “will be hurt verybadly if you don’t make a deal.”
“I say openly to President Xi & all of my many friends in China that Chinawill be hurt very badly if you don’t make a deal because companies will beforced to leave China for other countries,” Trump tweeted.
“Too expensive to buy in China. You had a great deal, almost completed, &you backed out!” Trump said ramping up his remarks against Beijing afterthe collapse of trade negotiations with China.Officials of the TrumpAdministration say that China backed out of a trade deal that they hadnegotiated over past several months involving top officials from the twocountries.
Last November, Trump and Xi had agreed to negotiate a trade deal in 100days. As a result, Trump paused his decision to increase import tariffs ofChinese products.
The negotiation period was extended after March.According to US officials,the two countries were ready with the draft of the final deal that they hadnegotiated. But early this month China came out with proposals for majorchanges. US now accuses China of going back on its commitment.
In retaliation, Trump increased import tariff (from 10 per cent to 25 percent) on nearly USD 200 billion of Chinese products. He has also orderedfor similar import tariffs on the rest of the Chinese imports of about USD300 billion.