‘U.S. REPEATEDLY ABUSED WTO TRADE PRACTICES’

Accusation comes amid Trump’s threat to slap more tariffs on Chinese imports

CHINA accused the United States of “repeatedly abusing” trade practices, as Beijing braced for an imminent announcement from the United States President Donald Trump slapping more tariffs on Chinese imports.

The US tariffs on Chinese imports worth as much as up to US$60 billion (RM234.4 billion) were set to be unveiled late yesterday, raising fears that the world’s two largest economies could be sliding towards a trade war.

On Wednesday, the World Trade Organisation (WTO) ruled that Washington had not fully complied with a 2014 ruling against its anti-subsidy tariffs on various Chinese products ranging from solar panels and wind towers to steel cylinders and aluminium extrusions.

The WTO ruling “proves that the US side has violated WTO rules, repeatedly abused trade remedy measures, which has seriously damaged the fair and just nature of the international trade environment, and weakened the stability of the multilateral trading system”, said China’s commerce ministry late on Wednesday.

The tariffs Trump is set to announce will be imposed under Section 301 of the 1974 US Trade Act, following an intellectual property probe launched in August last year.

Trump is accusing Beijing of compelling US firms to transfer their intellectual property to China as a cost of doing business there.

Trade wars were “good” and “easy to win”, said Trump, having made election campaign promises to get tough with China over its huge surplus with the US.

China has repeatedly said it has no wish to fight a trade war, but warned that it is ready if needed.

“With regards to the Section 301 investigation, China has expressed its position on many occasions that we resolutely oppose this type of unilateral and protectionist action by the US,” said the Commerce Ministry in a fresh statement yesterday.

“China will not sit idly by while legitimate rights and interests are hurt. We must take all necessary measures to firmly defend our rights and interests.”

The Wall Street Journal reported that Beijing had already prepared to strike back with tariffs aimed at Trump’s support base, including levies targeting US agricultural exports.