WORLD Chinese arm for US trade dispute
CHINA has announced a list of US goods, including pork, apples and steel pipe, on which it might raise tariffs in an escalating trade dispute with US President Donald Trump.
The Commerce Ministry called on Washington to negotiate a settlement to the conflict over higher US import duties on steel and aluminium but set no deadline.
Beijing’s move appeared to be a calculated step aimed at increasing domestic US pressure on Mr Trump by making clear which exporters, especially from farming areas that supported the President in the 2016 election, might be hurt.
The dispute has weighed on global financial markets amid concern it could spiral into a damaging round of retaliatory import controls by governments worldwide.
The higher US duties on aluminium and steel have little effect on China, which exports only a small amount of those products to the US. But private sector analysts have said Beijing would feel obliged to take action to avoid looking weak in a high-profile dispute.
The country’s top economic official, Premier Li Keqiang, earlier appealed to Washington to “act rationally” and said: “We don’t want to see a trade war.”
The Commerce Ministry said the higher US tariffs “seriously undermine” the global trading system. It rejected Mr Trump’s contention they are needed to protect US national security.
“The Chinese side urges the US side to resolve the concerns of the Chinese side as soon as possible,” the ministry said. It appealed for dialogue “to avoid damage to overall Chinese-US co-operation”.
Mr Trump complained bitterly about the nation’s trade deficit and accused China of stealing America’s prized technology.
IT IS THE LARGEST DEFICIT OF ANY COUNTRY IN THE HISTORY OF OUR WORLD. IT’S OUT OF CONTROL
DONALD TRUMP
“Any way you look at it, it is the largest deficit of any country in the history of our world. It’s out of control,” he said of the US-China imbalance.
Beijing had a trade surplus of $US275.8 billion ($A356 billion) with the US last year.
US authorities are also investigating whether Beijing improperly compels foreign companies to hand over technology in exchange for market access, which could lead to still more trade penalties.
Goods targeted for possible higher tariffs in China include pork and aluminium scrap. They would receive a 25 per cent duty increase, mirroring the US tariff hike on steel.