China eyeing US farm exports for retaliation

BANGKOK, Mar 03 (AP): Chinese manufacturers reported an uptick in orders in February as importers rushed to beat higher US tariffs imposed by President Donald Trump, as a Chinese state media report said that Beijing was considering ways to retaliate.

Trump earlier imposed a tariff of 10 per cent on imports from China and that will rise to 20 per cent beginning Tuesday. He also ended the "de minimis" loophole that exempted imports worth less than $800 from tariffs, in a blow to companies whose online sales direct to consumers had soared in recent years.

The Global Times, a newspaper of China's ruling Communist Party, said Monday that Beijing was studying both tariffs and non-tariff moves to counter Trump's higher tariffs. Asked about that report, Foreign Ministry spokesman Lin Jian said that "China will take all necessary measures to firmly safeguard own legitimate rights and interests."

"US agricultural and food products will most likely be listed," it said, citing an unnamed source. Last week, Chinese Commerce Ministry officials had said the two sides were in a "dialogue" about trade.

The stronger-than-expected data came as Chinese leaders gathered in Beijing for the annual session of the National People's Congress. Lawmakers are expected as usual to endorse policies and priorities set by the ruling Communist Party, which could include some fresh help for the economy as it slows to annual growth many economists forecast will fall to about 4.5 per cent this year.

Surveys of factory managers showed China's official purchasing managers index rose to 50.2 per cent from 49 per cent in January, though that was just above the 50 level that marks the break between contraction and expansion. The new orders index rose to 51.1.

Steady industrial production suggests that government spending and "front running" to beat the higher tariffs supported stronger business activity last month, Zichun Huang of Capital Economics said in a report.