China protests about US warship sighting as vital trade talks get under way
Chinese and American officials began talks yesterday aimed at ending a bruising tariffs battle between the world’s two biggest economies, as Beijing complained about the sighting of a US warship in what it said were Chinese waters.
It was unclear if the row over the warship might disrupt talks being held at the Chinese Commerce Ministry. Both sides expressed optimism about the potential for progress in settling their tariff fight over Beijing’s technological ambitions.
Yet neither has indicated its stance has changed since a December 1 agreement by presidents Donald Trump and Xi Jinping to postpone further increases.
Ministry spokesman Lu Kang said that Chinese military aircraft and ships were sent to identify the US vessel and warn it to leave the area near disputed South China Sea islands.
He said the USS McCampbell had broken Chinese and international law, infringed on Chinese sovereignty and undermined peace and stability.
There was no immediate comment from the US about the Chinese complaint.
The talks went ahead despite tensions about the arrest of a Chinese tech executive in Canada on US charges related to possible breaches of trade sanctions against Iran.
Mr Trump imposed tariff increases of up to 25 per cent on $250 billion (Dh918bn) worth of Chinese imports over accusations Beijing steals or pressures companies into handing over technology.
China responded by imposing penalties on $110bn worth of American goods, slowing customs clearance for US companies and suspending the issuing of licences in finance and other businesses. Economists say the 90-day postponement of tariff increases that were meant to take effect on January 1 may be too short to settle the disputes straining relations.
But cooling economic growth in both countries is increasing pressure to reach a settlement.
Chinese growth fell to a post-global crisis low of 6.5 per cent in the quarter ending in September. Vehicle sales tumbled 16 per cent in November compared with a year earlier.
The US economy grew at an annual rate of 3.4 per cent in the third quarter, and unemployment is at a five-decade low. But surveys show consumer confidence is weakening because of concern that growth will slow this year.
Washington, Europe and other trading partners complain that Beijing’s tactics breach its market-opening obligations.
The stand-off also reflects American anxiety about China’s rise as a potential competitor in telecoms and other technology.
Beijing has tried in vain to recruit France, Germany, South Korea and others as allies against Mr Trump, but they have echoed US complaints about Chinese industrial policy and market barriers.
The EU filed its own challenge in the World Trade Organisation in June against Chinese rules it said restrict foreign companies from protecting and profiting from their own technology.
Washington, Europe and other trading partners complain that Beijing’s tactics breach its marketopening obligations