China: Unilateral trade actions will not solve disputes

BEIJING : An escalating trade dispute hit American natural gas exports after China said it would impose tariffs on $60 billion worth of US goods, even as Premier Li Keqiang said unilateral trade actions will not resolve rows.

“It is essential that we uphold the basic principles of multilateralism and free trade,” Li said in a speech at the World Economic Forum summit, billed as the Summer Davos, in Tianjin on Wednesday.

During his speech, Li weighed in on unilateral trade actions as China and US sank deeper into a trade crisis, with both sides levying tit-for-tat tariffs this week.

Responding to the US decision to place additional levies on $200 billion worth of Chinese goods from Monday, China announced on Tuesday that it would apply its own tariffs on $60 billion worth of US imports, including a 10% tariff on liquefied natural gas (LNG) imports.

Li was quoted by agencies as saying the trend of globalisation is unstoppable, even though there are flaws in the process, and the basic principle of free trade should be maintained.

Speaking at a Sino-US oil and gas forum in Houston, Li Fanrong, China’s deputy administrator for the National Energy Administration, said in his opening remarks that cooperation can be expanded and more can be done to promote bilateral trade and investment.

Alibaba chairperson Jack Ma too spoke out against the ongoing trade war between the world’s

ALIBABA FOUNDER JACK MA WARNED TRADE TENSIONS WILL LIKELY IMPACT CHINESE AND FOREIGN COMPANIES IMMEDIATELY AND NEGATIVELY.

two largest economies, saying it will not be possible to create one million jobs in the US in the hostile circumstances.

“The current situation has already destroyed the original premise. There is no way to deliver the promise.”

He said Chinese businesses may move production to other countries in the medium-term to get around tariffs.

In a hard-hitting commentary, the Communist Party of China mouthpiece, People’s Daily, said Washington is wrong if it thinks that Beijing will play into its hands.

“Part of Washington’s rationale for this is the belief that its tariff tactics will have gruelling consequences for the Chinese economy; as such, China would agree to make more concessions – only to play into Washington’s hands. However, this US assumption is based on a lack of understanding of China’s economy and policies,” the editorial said.

It cited examples of US companies that are bullish in China. “China’s policies on trade facilitation and investment liberalisation, in sharp contrast to the US strategy, have been well received around the globe,” it said.