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US President Donald Trump and President Xi Jinping agreed a trade war truce at the G20 summit in Osaka at the end of June. Photo: Reuters

Trump’s tweets part of ‘propaganda and psychological war’ as China defends second quarter growth rate

  • US President Donald Trump sent two tweets on Twitter after China’s second quarter growth rate was confirmed as the lowest since records began in 1992
  • Commentary published on Tuesday by the ‘Global Times’ suggested Washington was trying to ‘scare’ China into a deal to end the trade war

US President Donald Trump exaggerated his criticism of China’s economy, according to a state-run newspaper, suggesting Washington was attempting to step up its propaganda and psychological efforts to pressure Beijing into a deal to end the trade war.

Trump’s need to sway voters ahead of next year’s presidential election promoted him to over-interpret China’s second quarter growth data which was released on Monday, according to a commentary published on Tuesday by the Global Times, a hardline, nationalist Chinese tabloid.
“In addition to trying to scare China, Washington also wanted to promote its trade actions and to reduce the voices of dissatisfaction [with the trade war] in the US,” it wrote in response to Trump’s tweets on Monday morning. 

But, “isn’t it odd [for Washington] to have such confidence [to laugh at China],” the newspaper added, pointing out that China’s second quarter growth rate of 6.2 per cent was more than twice that of the United States.

The US economy grew at an annualised rate of 3.1 per cent in the first quarter, with initial second quarter growth data due next week.

The sharp criticism came after Trump claimed credit for China’s second quarter growth rate, which was the slowest since records began in the first quarter of 1992.

“The United States tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving,” he wrote.

“This is why China wants to make a deal with the US, and wishes it had not broken the original deal in the first place.”

This is why China wants to make a deal with the US, and wishes it had not broken the original deal in the first place
Donald Trump

The editorial quoted Trump’s tweets almost word-for-word to refute the US president’s reading of China’s economic data, but did not name Trump directly. The tweets showed that the US is very frustrated with the trade war impasse, the paper added.

China’s Foreign Ministry also dismissed Trump comments, though in more diplomatic terms.

“As for the so-called claims by the US that China is eager to reach an agreement with the US because of the economic slowdown, this is completely misleading,” said ministry spokesman Geng Shuang on Tuesday.

“The conclusion of an economic and trade agreement is by no means of unilateral appeal to the Chinese side. The US side also has this demand,” given that people from “all walks of life” in the US are opposed to paying for US tariffs on Chinese imports.

“I would like to once again call on the US to work together with China, to move in the same direction, and to reach a mutually beneficial and win-win agreement on the basis of mutual respect and equal treatment.”

China and the US have not yet settled the details, including the date and place, of new face-to-face trade negotiations, despite President Xi Jinping and Trump agreeing to a trade truce at the G20 summit in Japan two weeks ago.
While ignoring Trump’s repeated calls for agricultural purchases, Beijing has hardened its stance by insisting that its core concerns, including the additional tariffs on Chinese goods, must be addressed.

US Treasury Secretary Steven Mnuchin said he and US trade representative Robert Lighthizer may travel to Beijing for negotiations if talks by phone this week are productive.

“We expect to have another principal-level call this week, and to the extent we make significant progress, I think there’s a good chance we’ll go there later,” Mnuchin said on Monday at the White House.

China’s second quarter growth rate of 6.2 per cent, a slowdown from 6.4 per cent in the first quarter, is within the government’s annual target range of 6.0 to 6.5 per cent.

“We will ensure the Chinese economy grows within a reasonable range through a deepening of reforms, a greater opening-up [of the domestic market to foreign investors], and a strong home market,” National Development and Reform Commission (NDRC) spokeswoman Meng Wei said on Tuesday.

Chinese officials have repeatedly claimed that they have sufficient policy tools to ensure continued adequate growth, with the government widely expected to step up fiscal spending and tax cuts in the second half of 2019 to achieve the annual growth target.

The ongoing trade war is continuing to lead to companies in China to explore their options overseas, particularity in Southeast Asia, as they seek to avoid US tariffs.

But NDRC spokeswoman Meng said it was normal for some companies to relocate their factories to other countries since Chinese manufacturing had entered a phase of transformation and upgrading.

“The impact is still within control. Only a limited number of companies have moved out and most of them were in low or medium-end industries.” she added.

Data released by the Ministry of Commerce last week showed foreign direct investment in China rose to US$70.4 billion in the first six months of this year, 3.5 per cent higher than a year earlier.

Additional reporting by Catherine Wong and Bloomberg

This article appeared in the South China Morning Post print edition as: trump ‘forcing trade deal by propaganda’
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