China cuts more tariffs

China announced more tariff cuts Wednesday on imports of construction machinery and other goods, but took no action to address the U.S. complaints about its technology policy that are fuelling an escalating trade battle.

The move reflects the Chinese government’s desire to stick to plans to make the economy more competitive and its intention to press on with stateled development of industry. It gave no indication the reductions would apply to U.S. goods, on which Beijing has imposed additional taxes of five to 25 per cent.

The tariff cut, effective Nov. 1, applies to 1,585 types of goods including construction equipment, industrial machinery, paper products and building materials. It is the second reduction in less than a year following a cut last November for food and consumer goods.

President Xi Jinping’s administration has this year announced a series of measures to open up the Chinese market to outside competition but none addresses U.S. complaints that the government steals or pressures foreign companies into handing over technology.

The United States, Europe and other trading partners say initiatives such as “Made in China 2025,” which calls for state-led creation of champions in robotics and other fields, violate Beijing’s obligations to open up its market to foreign companies. American officials worry they might erode U.S. industrial leadership.