Published: Thu, November 15, 2018
Worldwide | By Isabel Fisher

‘US won't back down!’ Pence THREATENS China with all-out cold WAR

‘US won't back down!’ Pence THREATENS China with all-out cold WAR

China has repeatedly said that it has "indisputable sovereignty over the South China Sea islands and its adjacent waters", but Vietnam, Taiwan and the Philippines, Malaysia and Brunei also have overlapping claims in the waterway, which includes vital sea lanes through which about $3 trillion in global trade passes each year and where the U.S., Chinese, Japanese and some Southeast Asian navies also routinely operate.

Reuters reported on Wednesday that China had delivered a written response to Washington's demands, citing three US government sources. It was unclear if the response contained concessions that would satisfy Trump's demands for change.

"They are not close to a favourable deal on trade".

In an address to a Washington think tank on Friday, Mr Navarro, head of a White House trade council, said Wall Street figures were pressuring the White House to reach a resolution with Beijing.

A US Treasury team discussed trade with their Chinese counterparts on Tuesday, a Treasury spokesman said on Wednesday.


Earlier this month, after a telephone conversation with Xi, Trump said he thought the United States would make a deal with China on trade but was ready to levy more tariffs on Chinese goods if no progress was made. Trump has also threatened to impose tariffs on all remaining Chinese imports, about US$267 billion worth, if Beijing fails to address United States demands.

"He was not speaking for the president, nor was he speaking for the administration", Mr Kudlow told CNBC.

Vice President Mike Pence said that the Trump administration does not plan to budge in its trade dispute with China, even if that means a cold war. He first moved to add the additional levies to $50 billion of China's imports this summer, to which Beijing responded in a tit-for-tat manner, placing new taxes on an equal amount of USA products.

Pence said the USA is "in a strong position" for a potential escalation of the trade war it has already unleashed on China.

"The US side should also respect China's sovereignty, security, and development interests, and respect the development path chosen by the Chinese people in line with its own national conditions".

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