On Monday, Asian markets were mostly lower in early trade as Beijing released a white paper on the weekend and accused the United States for growing the trade war.
Hong Kong’s Hang Seng Index tumbled 0.6 percent. The Shanghai Composite and the Shenzhen Component weakened 0.7 percent and 0.6 percent respectively.
China issued a white paper that claimed the U.S. is an unreliable negotiator and accused it for starting global trade problems.
The rising trade spat has not “made America great again” and “will only make things worse for all sides,” the paper said, as trade actions taken by U.S. President Donald Trump and his government have done serious damage to the U.S. economy because of increased production prices.
The main reason trade meetings stalled a month ago was that “the U.S. has backtracked.” Vice Commerce Minister Wang Shouwen said at a press conference on Sunday.
“During the consultations, China has overcome many difficulties and put forward pragmatic solutions. However, the U.S. has backtracked, and when you give them an inch, they want a yard,” Wang said.
On Friday, cautioned in a press event that the worldwide economy would drop “if the China and U.S. trade spat remains to grow larger, it may affect the global economy to drop.” said Dai Xianglong, former governor of the People’s Bank of China.
“The consequences of the China-U.S. trade war not only will be reflected in both countries, but will also extend to relevant regions, extend to the whole world.”
“Nothing is agreed until everything is agreed,” he added.
China executed previously announced tariff hikes on Sunday and said it will take action against “unreliable” foreign firms, with a list of violators pending.
Even though not a major directional driver, a private survey showed China’s Caixin/Markit factory Purchasing Managers’ Index for May was 50.2, marginally above the anticipated level of 50.
“The stronger rise in overall new business supported a renewed expansion in buying activity among Chinese manufacturing firms. Though only slight, it was the first time that purchasing activity had increased for five months,” Caixin said in a report.
In the meantime, Japan’s Nikkei 225 dropped 1.2 percent.
South Korea’s KOSPI added 0.7 percent even after data showed the country’s headline Nikkei/Markit purchasing manager’s index in the industrial part tumbled to 48.4 in May, from 50.2 in April.
The contraction was at its fastest stride in three months.
Australia’s ASX 200 plunged 0.9 percent.