China Warns of ‘Justified and Necessary Response’ to Trade War (Bloomberg)

China’s Foreign Minister Wang Yi vowed a “justified and necessary response” to any efforts to incite a trade war, in the country’s most forceful response yet to U.S. President Donald Trump’s threatened trade actions.

A trade war would hurt both the actor as well as the intended target, Wang told a news briefing on the sidelines of the National People’s Congress in Beijing Thursday. He urged the U.S. to work with China on a mutually beneficial solution.

“A trade war has never been the right way to solve the problem, especially under globalization,” Wang said. Such a conflict “will only harm everyone and China will surely make a justified and necessary response.”

Trump’s economic advisers are defending U.S. plans to impose steel tariffs, leaving the door open for exempting some countries and downplaying the fallout of a possible trade war. Still, Trump hinted on Wednesday that his restrictions on trade could run even deeper, citing China’s alleged theft of intellectual property.

The U.S. is said to be considering clamping down on Chinese investment and imposing tariffs on a broad range of goods to punish Beijing over unfair intellectual-property practices as part of an ongoing U.S. investigation ordered by Trump.

In Beijing, Wang also said efforts to bring North Korea back to the negotiating table were at a “crucial moment” and urged both parties to work together. South Korean envoys are preparing to brief U.S. officials in Washington on their latest talks with Kim Jong Un.

— With assistance by Keith Zhai, Peter Martin, and Dandan Li