BEIJING: China said Tuesday it is “fully prepared” for a trade war with the US as hopes dwindle for a breakthrough in tensions this week between the world’s two biggest economies.
Washington is due to start charging tariffs on $34 billion in Chinese imports as of Friday while Beijing has pledged to retaliate with equal tariffs on $34 billion in US goods.
Foreign Ministry spokesman Lu Kang told reporters that China is “fully prepared to take a package of necessary measures” to safeguard its national interests.
US companies ranging from soybean farms to whiskey distilleries to automakers like Ford and Tesla could suffer if China ramps up retaliatory measures. China’s list is designed to inflict pain on US farmers and other groups that are important to President Donald Trump’s political base.
Trade friction also threatens to ensnare major Chinese companies, with China Mobile the latest to encounter obstacles in the US market. A US agency under the Department of Commerce recommended Monday against giving operating licenses to China’s largest telecom carrier, citing national security risks posed by the state-run firm.
Lu on Tuesday called the warnings “unfounded speculation and an irrational clampdown” stemming from a Cold War mentality.
“We hope the US will provide a level-playing field for Chinese companies’ investment and operation in the US and do something conducive to the mutual trust,” he said.
China’s stock market has fallen nearly 10 percent in recent weeks on fears of a trade war while its currency has dropped sharply against the US dollar.
In comments Tuesday, central bank governor Yi Gang said the yuan’s 3 percent depreciation over the past two weeks reflects a strengthening of the US dollar and “the effect of external uncertainties.” The yuan, whose exchange rate is tightly controlled, is at its lowest level against the dollar since December.
Despite that, Yi said financial risks were under control.
“The fundamentals of the Chinese economy at present are good,” he said.
“Our country implements a floating exchange system consulting a basket of currencies and based on market supply and demand,” Yi said. “Years of practice have shown this system to be effective and must continue to be adhered to.”
Responding to questions over a safety warning to Chinese citizens traveling to the United States issued by the government late last week, Lu, the foreign ministry spokesman, said the government was merely fulfilling its duty to warn travelers of “potential dangers.”
The warning to Chinese travelers noted the high cost of medical treatment in the US, the importance of guarding against crime and terrorist attacks and the considerable powers wielded by Immigration and Customs Enforcement agents.
Trump has accused China of unfairly acquiring US technology through coercion and theft and limiting market access for US finance and technology firms — claims that China denies.
China accuses Washington of protectionism, pointing to the struggles of Chinese companies like China Mobile and telecoms equipment maker ZTE, which briefly shut down in April after the Department of Commerce temporarily banned it from purchasing US chips.
China ‘fully prepared’ for US trade war
China ‘fully prepared’ for US trade war
- Washington is due to start charging tariffs on $34 billion in Chinese imports as of Friday
- Beijing has pledged to retaliate with equal tariffs on $34 billion in US goods
Islamic finance in Oman poised for 25% growth: Fitch
RIYADH: Oman’s Islamic finance sector is on track to reach $45 billion this year, rising from $36 billion at the end of 2025, supported by a favorable macroeconomic environment, according to a report by Fitch Ratings.
The rating agency said the anticipated 25 percent year-on-year growth will be underpinned by increasing demand for sukuk as both a funding mechanism and a public policy tool, alongside government-led initiatives and growing grassroots demand for Shariah-compliant financial products.
Sukuk accounted for around 60 percent of US dollar-denominated debt issuance in 2025, a sharp decline from 94.3 percent previously, with the remaining share comprising conventional bonds. Despite this progress, Fitch highlighted ongoing structural challenges, including the absence of Islamic treasury bills and derivatives, an underdeveloped Omani rial sukuk and bond market, and the limited role of Islamic non-bank financial institutions.
The performance of Oman’s banking sector continues to reflect steady advancement toward Vision 2040, the country’s long-term development strategy focused on economic diversification, private sector expansion, and enhanced financial resilience.
Operating conditions remain supportive for both Islamic and conventional banks in Oman, buoyed by elevated, though gradually moderating, oil prices, the report noted.
Expanding credit flows — particularly to non-financial corporates and households — are helping drive the growth of small and medium-sized enterprises and boost domestic investment. These trends are reinforcing Oman’s efforts to reduce dependence on hydrocarbons and build a more diversified economic base.
Fitch projects loan growth of 6 to 7 percent in 2026, fueled by rising demand across both retail and corporate segments. In addition, the proposed 5 percent personal income tax, scheduled for implementation from 2028, is expected to have only a limited overall impact on banks, according to the agency.
Islamic banking in Oman was introduced following the Central Bank of Oman’s preliminary licensing guidelines issued in May 2011, which allowed the establishment of full-fledged Islamic banks and Islamic banking windows operating alongside conventional institutions.
This regulatory framework was formally entrenched in December 2012 through a royal decree amending the Banking Law, requiring the creation of Shariah supervisory boards and granting the central bank authority to establish a High Shariah Supervisory Authority.
