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China’s exports are expected to have maintained solid growth in July despite the new tariffs on billions of dollars of shipments to the United States, though the outlook has darkened as both sides raised the stakes in the trade brawl. The vitriol from the People’s Daily follows Trump’s comments on Twitter from Saturday in which he boasted that his strategy of placing steep tariffs on Chinese imports was “working far better than anyone ever anticipated”, and that Beijing was now talking to the United States about trade.

Trump cited losses in China’s stock market as he predicted the U.S, market could “go up gunmetal and mother of pearl inlaid tie clip cufflinks dramatically” once trade deals were renegotiated, China’s stocks were lower on Monday as Beijing’s latest tariff threats escalated the tit-for-tat Sino-U.S, trade war, while the yuan weakened after briefly edging up despite the central bank’s latest efforts to shore up the tumbling currency, Michael McCarthy, Sydney-based chief market strategist at CMC Markets and Stockbroking, wrote in a note to clients that while China’s proposed new tariffs appeared proportionate, “White House tweets claiming an upper hand for the U.S, over the weekend risk another round of confidence sapping exchanges.”..

A flurry of articles in Chinese state media emphasized the resilience of China’s economy and downplayed concerns about the impact of the Sino-U.S. trade war. “Market participants foresee a relatively stable Chinese currency in the near term, without fear of impacts from the U.S.-China trade dispute. They expect solid economic growth momentum amid policy fine-tuning,” an article in the official English-language China Daily newspaper said, citing Chinese economists. On Friday, the People’s Bank of China said it would require banks to keep reserves equivalent to 20 percent of their clients’ foreign exchange forwards positions from Monday, in a move to stabilize the yuan.

“Leading China’s economy on a stable and far-reaching path, we have confidence and determination,” another commentary in gunmetal and mother of pearl inlaid tie clip cufflinks the main edition of the People’s Daily said, Trump has threatened tariffs on over $500 billion in Chinese goods, covering virtually all U.S, imports from the Asian giant, demanding that Beijing make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries, The nationalist Global Times, responding in an editorial late on Sunday to White House economic adviser Larry Kudlow’s remarks that China should not underestimate Trump’s resolve, said China did not fear “sacrificing short-term interests”..

GENEVA (Reuters) - The European Union has asked the World Trade Organization to certify that it has complied with WTO rulings on its subsidies for planemaker Airbus, attempting to forestall billions of dollars of U.S. sanctions, a document published by the WTO showed on Monday. The legal move is the latest step in a 14-year-old trade dispute between the EU and the United States over funding for Airbus (AIR.PA) and its U.S. rival Boeing. (BA.N). In May the WTO appeals body ruled that the EU had failed to remove subsidized government development loans for the world’s largest airliner, the A380, and Europe’s newest long-haul jet, the A350, causing losses for Boeing BA.N and U.S. aerospace workers.

That opened the way for U.S, retaliatory trade sanctions, subject only to a decision by a WTO arbitrator about how big those sanctions should be, which is still pending, Boeing says Airbus received illegal aid worth $22 billion, including $18 billion in loans from governments, Of these, $9 billion is involved in the outstanding A350 gunmetal and mother of pearl inlaid tie clip cufflinks and A380 claims, Airbus disputes those numbers, saying they overstate the amount of support embedded in the contested loans, It has meanwhile leveled significant subsidy claims against Boeing..

In the latest legal move, the EU said it had informed the WTO in May that it had withdrawn all remaining subsidies and taken appropriate steps to remove their adverse effects, and it wanted a legal ruling to that effect. Such a legal ruling would remove the basis for U.S. sanctions. “The legal basis for this request is that.. these measures have resulted in the European Union achieving full compliance, by (i) withdrawing the remaining subsidies, and/or (ii) taking appropriate steps to remove their adverse effects,” the EU said.

BEIJING (Reuters) - Honda Motor Co (7267.T) on Monday said it will recall 96,900 Avancier sport utility vehicles (SUVs) in China, due to a cold-climate engine problem that has already led to hundreds of thousands of its vehicles being recalled earlier this year, The midsize Avancier is produced and sold in the world’s biggest auto market by one of Honda’s two local joint ventures, Honda said it was looking at two other models in China to see if they were facing the same problem, The recall is linked to a problem caused by gunmetal and mother of pearl inlaid tie clip cufflinks an unusual amount of un-combusted petrol collecting in the engine’s lubricant oil pan, The issue in some cases caused a strong odor of gasoline inside the car and in other cases the car’s check-engine light came on, Honda has said..

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