China may soon release own tariffs on US goods
China is ready to talk to the US about trade frictions while preparing countermeasures for the forthcoming list of tariffs on Chinese imports, Chinese experts said.
China has nearly completed its list of retaliatory tariffs on US products and may release it soon, the Global Times has learned.
US President Donald Trump signed a presidential memorandum on March 22 proposing tariffs on up to $60 billion of Chinese goods. The tariffs would follow a 30-day consultation period that starts once a list of goods is published, Reuters reported.
The US measures follow a so-called 301 investigation led by US Trade Representative Robert Lighthizer.
Lighthizer’s office will publish a list of targeted products within 15 days from the signing of
the memorandum, and there will be a 30-day period for public comment.
“The 301 investigation and imposition of tariffs are unilateral, and violate the most fundamental values and principles of the WTO. And according to WTO rules and the US commitment, the US shall by no means take unilateral measures to other members based on a 301 investigation,” Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Wednesday.
Li said that what the US did will affect the international trade order and set a bad example to countries which might follow its protectionist policies.
Chinese officials have raised the US move at a meeting of the WTO’s disputes settlement body and indicated that China strongly opposes the unilateral action. On Monday, China’s Ambassador to the WTO Zhang Xiangchen called on other WTO members to oppose the Section 301 tariffs and “lock this beast back into the cage of the WTO rules,” Reuters reported.
“China is preparing its list of retaliatory tariffs on US exports to China in accordance with WTO rules. The longer the US list, the greater the backlash from China. And once China takes countermeasures, the US will feel the pain,” Li further noted.
Tu Xinquan, a professor at the University of International Business and Economics, told the Global Times on Wednesday that limiting China’s exports to the US would affect US domestic customers and retailers, and if the US list includes production equipment, US downstream enterprises would be affected.
“A trade war will not solve the China-US trade imbalance, a point that many US politicians understand. But instead of fixing the problems in the US economy, the Trump administration insists on imposing tariffs to please supporters,” Tu said.
All systems go
US Treasury Secretary Steve Mnuchin on Sunday said Trump had no intention of backing down and was not worried about a trade war. “We are going to proceed with our tariffs. We’re working on that,” Mnuchin told Fox News Sunday.
China is fearless in the face of a trade war with the US and has various countermeasures if Washington keeps the current peremptory attitude, experts said.
“There will be no winner in a trade war. China is hoping for the best and preparing for the worst. The US should show sincerity at negotiations, and not pin its hopes on China giving up,” Li said.