China warns US over tariffs

• Beijing says all trade and business deals will be nullified if Washington imposes measures

China warned the US on Sunday that any agreements reached on trade and business between the two countries will be void if Washington implements tariffs and other trade measures, as the two ended their latest round of talks in Beijing.

A short statement, carried by the official Xinhua news agency, made no mention of any specific new agreements after US Commerce Secretary Wilbur Ross met Chinese Vice-Premier Liu He. It referred instead to a consensus they reached in May in Washington, when China agreed to increase its purchases of US goods and services.

“To implement the consensus reached in Washington, the two sides have had good communication in various areas such as agriculture and energy, and have made positive and concrete progress,” the state news agency said, adding details would be subject to “final confirmation by both parties“.

The US and China have threatened tit-for-tat tariffs on goods worth up to $150bn each.

Xinhua said China’s attitude had been consistent, that it was willing to increase imports from all countries, including the US.

“Reform and opening up and expanding domestic demand are China’s national strategies. Our established rhythm will not change. The achievements reached by China and the US should be based on the premise that the two sides should meet each other halfway and not fight a trade war,” Xinhua said.

“If the US introduces trade sanctions, including raising tariffs, all the economic and trade achievements negotiated by the two parties will be void.”

There was no immediate comment from the US delegation or from Ross himself.

Just when it appeared a trade truce was on the cards, the White House last week warned it would pursue tariffs on $50bn worth of Chinese imports and impose restrictions on Chinese investments and tighter export controls.