China urges U.S. away from “brink” as Trump picks trade weapons
BEIJING/SHANGHAI, (Reuters) - China urged the United States yesterday to “pull back from the brink” as President Donald Trump’s plans for tariffs on up to $60 billion in Chinese goods moved the world’s two largest economies closer to a trade war.
The escalating tensions sent shivers through financial markets as investors foresaw dire consequences for the global economy if trade barriers start going up.
Trump is planning to impose the tariffs for what he says is misappropriation of U.S. intellectual property. A probe was launched last year under Section 301 of the 1974 U.S. Trade Act.
“China doesn’t hope to be in a trade war, but is not afraid of engaging in one,” the Chinese commerce ministry responded in a statement.
“China hopes the United States will pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place.”
In a presidential memorandum signed by Trump on Thursday, there will be a 30-day consultation period that only starts once a list of Chinese goods is published. That effectively creates room for potential talks to address Trump’s allegations on intellectual property theft and forced technology transfers.
Though the White House has said the planned tariffs were a response to China’s “economic aggression”, Trump said he views China as “a friend” and the two sides are in negotiations. A Chinese commerce ministry official said both sides were in touch. Still, it is unclear under what terms China and the U.S. are willing to talk, with Beijing adamant that the U.S. tariffs constitute a unilateral move that it rejects.
China has always said it will not hold talks with the U.S. within the framework of the Section 301 probe, Chen Fuli, director-general of the commerce ministry’s department of treaty and law, told reporters.
“Currently, we are not looking to get in a negotiation again,” a senior U.S. official told reporters in Beijing.
If China wants to avoid U.S. tariffs, it needs to start taking concrete action, the official said, adding that Washington has not given Beijing any to-do list to remedy trade ties.