China has promised to hit back at the United States (US) with tariffs of its own in retaliation against US President Donald Trump's plans to slap nearly US$50 billion (~S$65.8 billion) worth of tariffs on Chinese goods.

The tariffs are an attempt to protect US companies' intellectual property with the Trump administration claiming that China has stolen or coerced US companies into turning over their intellectual property, as well as stealing US intellectual property by hacking US networks.

This also comes after his announcement on March 1 of tariffs on US imports of steel and aluminium in the name of national security.

In response, China's Ministry of Commerce unveiled plans today (Mar 23) to impose tariffs on up to US$3 billion (~S$3.95 billion).

According to Reuters, China has assembled a list of 128 US products in total that could be targeted if the world's 2 largest economies are unable to come to an agreement on trade issues.

Trade war?

China's commerce ministry said that China would be implementing the measures in 2 stages:

• a 15% tariff first on products such as dried fruit, wine and steel pipes, and
• an extra 25% tariff on pork and recycled aluminium.

It also said that the tariffs are intended to "balance out the losses caused to Chinese interests by the US tariffs on imported steel and aluminium".

Nevertheless, China does not want to engage in a trade war with the US unless it absolutely has to:

"China doesn't hope to be in a trade war, but is not afraid of engaging in one.

China hopes the United States will pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place."

Asian stock markets plunged at the prospect of a trade war between the world's 2 biggest economies.

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Chinese citizens may boycott American goods too

With Chinese President Xi Jinping giving a nationalistic speech at the close of the National People's Congress where he secured a removal of term limits on his office, he is expected to keep up his tough stance as China's political strongman and retaliate against any perceived US hostility towards Chinese goods.

An editorial on Global Times, China's hawkish state tabloid, warns the US of the consequences it will face should it go ahead with the 'trade war':

"When the time comes it is not only the Chinese government that will counterattack the US trade war, there will be many Chinese people willing to turn it into a people's war.

Don't believe it? Come try us."

Top image via CNN/YT