China retaliates on tariffs, stock markets go into a slide

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They include 'forced tehnology transfer, ' a phenomenon in which China's government requires foreign companies to share control of their operations with Chinese companies - often giving their competition direct access to their trade secrets.

United States stocks posted a modest recovery on Friday following the conclusion of trade talks after both sides vowed to keep talking, even as they failed to strike a deal after months of back-and-forth, and the U.S. tariff increase took effect. "I don't know. That will take some time and then of course the president's going to have to make the final decision on that", Kudlow said.

"Markets have grown less optimistic about the US-China trade negotiations after some news reports from China's state-run media suggested a harder stance, " said Mayank Mishra, macro strategist at Standard Chartered Bank in Singapore.

President Donald Trump's unfounded claim his tariffs on Chinese goods are being paid by the Chinese government to the USA was denied by his own Director of the National Economic Council, Larry Kudlow.

According to US-India Strategic and Partnership Forum (USISPF), more than 200 American companies are now in talks with it for moving their business from China to India."We have roughly, nearly 200 (US) companies talking to us about how to set up an alternative to China by investing in India", Mukesh Aghi, president & CEO of USISPF, told PTI last month.

Beijing had set additional rates of 5% and 10% on 5,207 US products worth $60 billion in September, in response to the U.S.'s initial 10% duty on the $200 billion worth of Chinese goods, and warned at the time that it would counter any higher tariffs imposed by Washington. "However, once the country is strategically coerced, nothing is unbearable for China in order to safeguard its sovereignty and dignity as well as the long-term development rights of the Chinese people".

A year ago the United States imposed a 10% tariff on $200bn worth of Chinese products - including fish, handbags, clothing and footwear.

Research shows that Americans will bear the brunt of the impact from the tariffs, as the levies are paid by importers and ultimately passed on at least partially to consumers.

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"So if you need that new iPad, it is you who will be paying the import duty, not some worker in China", Weinberg wrote in a research note.

Mr Kudlow said he thought the tariffs would also have an impact on China's economy, as the higher cost would reduce U.S. demand for Chinese goods. That would pull annual growth below 6%, raising the risk of politically unsafe job losses.

"The expected countermeasures have not yet materialized".

Watch the clip above, courtesy of FOX News Channel.

Both sides have indicated that future talks are likely.

The latest China-US talks ended with no word of progress on Friday.

Trump piled on the pressure on Saturday, tweeting that "far worse" terms would be on offer for China if it doesn't act now.

"I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win", Mr Trump tweeted yesterday.