China says tariff threat against US ‘justified’

>> SINGAPORE: China’s foreign minister said yesterday that his country’s threat to impose retaliatory tariffs on US$60 billion of American goods in an escalating trade spat was “fully justified”.

Beijing threatened on Friday to bring in the levies on products ranging from beef to condoms, after US President Donald Trump’s administration upped the ante in its plans for additional tariffs on Chinese goods worth $200 billion.

Washington suggested the rate on the proposed extra tariffs could be increased from 10% to 25%.

The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries.

Washington claims that China’s export economy benefits from unfair policies, subsidies, and theft of American technology.

Speaking on the sidelines of a security forum in Singapore, Foreign Minister Wang Yi said China’s threat of retaliatory tariffs was “fully justified and necessary”.

“These are measures taken out of the consideration for upholding the interests of the Chinese people,” he said, speaking through a translator.

He said the move was also aimed at upholding the “global free trade regime” that was underpinned by the World Trade Organisation.

Mr Wang also hit back at comments by top White House economic advisor Larry Kudlow, who ridiculed China’s tariff threat as “weak” and said the world’s second-largest economy was in significant “trouble”.

“As to whether China’s economy is doing well or not, I think it is all too clear to the whole international community,” Mr Wang said, adding that China contributed a huge amount to global economic growth.

“I don’t see why he would come to the conclusion that China’s economy is not doing well.”

In early July, the US imposed 25% tariffs on $34 billion goods, with another $16 billion targeted in coming weeks, sparking retaliatory measures from China.

Days later, Washington unveiled a list of another $200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10% import duties.