China slams United States trade announcement & says ready to fight

China slams United States trade announcement & says ready to fight

China slams United States trade announcement & says ready to fight

Earlier on Tuesday, Washington said it was still considering slapping 25 per cent tariffs on US$50 billion (S$67.28 billion) of Chinese goods in retaliation for what the Trump administration says are China's unfair trade practices. But two days of talks in Washington ended earlier this month with only vague Chinese promises to buy more USA agriculture and energy products.

It's the latest twist in a trade dispute between the US and China that has roiled financial markets and prompted the International Monetary Fund to warn of a trade war that could undermine the broadest global upswing in years.

Washington also said it will press ahead with restrictions on investment by Chinese companies in the United States as well as export controls for goods exported to China. But the USA has yet to publish a list of targeted products for the $100 billion, and the White House statement on Tuesday made no reference to the second potential tranche of duties.

China must address its failure to protect United States intellectual property, but these tariffs are not an effective response because it will harm American jobs and consumers, said Erik Paulsen, Joint Economic Committee Chairman Congressman.

"When it comes to worldwide relations, every time a country does an about face and contradicts itself, it's another blow to, and a squandering of, its reputation", Hua said.

"This is really about Congress", said Derek Scissors, a China specialist at the conservative American Enterprise Institute.

"I don't think it is only a tactic, personally", he told reporters on Wednesday, adding that the group does not view tariffs as the best way to address the trade frictions. "This statement is obviously in violation of the consensus reached in Washington recently by both China and the United States", the Commerce Ministry said. China hit back at that, with a foreign ministry spokeswoman saying on Wednesday that China would respond accordingly if the US insisted on unilateral measures.

The move followed a brief hold on the tariffs put in place about 10 days ago as officials reportedly sought leverage to negotiate a deal with its largest trading partner. The fine would be on top of a $1 billion penalty ZTE has already paid for selling high-tech equipment to North Korea and Iran in violation of US sanctions.

Macron brands Trump tariffs move 'illegal' as European Union vows response
Canada and Mexico have also threatened retaliation, but have not publicly indicated which USA products they would hit. The 25 per cent tariff on steel and 10 per cent tariff on aluminum will be imposed effective midnight.

Earlier this month, the U.S. Department of Defense banned all smartphones and mobile modems from Chinese manufacturers ZTE and Huawei on all U.S. military bases worldwide.

The relationship between Navarro and Mnuchin appears to have been souring for a while over U.S. "China imposes much higher tariffs on U.S. exports than the United States imposes on China", the White House complained. Under that program, China aims to take a leading role in developing technologies in areas such as artificial intelligence, robotics, and electric cars. The list of targeted goods will be announced by June 15 and imposed shortly after, the White House said.

Tariffs will also be cut on processed foods such as aquaculture and fishing products and mineral water, from 15.2 percent to 6.9 percent. The list includes computer equipment, aerospace parts, medical devices, and industrial machinery.

It comes as Commerce Secretary Wilbur Ross prepares to travel to Beijing this week for another round of talks aimed at resolving the conflict. The dispute began in March, when his administration threatened to slap tariffs on up to $50 billion in Chinese shipments to punish Beijing for violating American IP rights.

The new tariff is part of one of three major steps that the United States is taking based on the 22 March memorandum signed by President Donald Trump.

"With so many head-spinning reversals on trade from the recent weeks, we suspect the Chinese negotiators and the markets have started to tune out the noise and focus on the substance", Tom Orlik, Bloomberg's chief Asia economist in Beijing, wrote in a report. China also subsidizes many favored industries.

China, meanwhile, has filed its own WTO dispute against the US, over Trump's earlier tariff proposals.

Citing a document issued by the Trump administration in December, the official said the US government would consider restrictions on visas for science and technology students from some countries.

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