>> It's been a tariff crossfire between Beijing and Washington for months. US President Donald Trump issued his first round of tariffs on 34 billion of China's imports in July.>>
Beijing matched them and since then, Trump's continued to up the ante. And with the threat of another round of tariffs on 267 billion, Trump's now threatening to engulf all of China's imports to the US.
Beijing said on Tuesday, they'd hit back with tariffs on 60 billion. That figure covers nearly everything they buy from America and that means, they're running out of trade war ammo. As Reuters' Tony Monroe reports, it's got people asking what will Beijing do now.>> So China does not have a lot of attractive options in terms of further retaliation in the event that the US escalates.
One of the options that China has is simply to wait. To wait and hope that the economic impact in the US of these higher tariffs on more goods actually starts to exact the toll there in terms of higher consumer prices. And even potentially job losses which could weaken political support for this hard line on China.
>> On Wednesday, the New York Times reported that Chinese officials have become increasingly uneasy about the conflict, citing unnamed Chinese government officials. Adding to that, they say is the risk of the Chinese public seeing any effort to cut a deal with Trump as backing down.>> Certainly, China does not want to be seen to be capitulating to US pressure.
And also, the challenge for China is that what the US is demanding here is really a revamp of core parts of its industrial policy. These are changes that even if China were to undertake them, really are things that would take a long time to implement.>> Trump has repeatedly accused Chinese firms of stealing American intellectual property and since China has ripped off the US on trade for years.
His next round of tariffs is set to activate on Monday.