Be rational, China tells Trump as trade war looms
BEIJING — China responded to the threat of a massive package of tariffs from the United States by vowing to further open its own markets to foreign trade and investment, while warning that a trade war between the two nations would hurt both sides.
President Donald Trump is preparing to impose a package of $60 billion in annual tariffs against Chinese products, a move he says will punish China for intellectual property theft and create more U.S. jobs, administration officials say. He is determined to bring down the U.S. trade deficit with China, which reached $375 billion last year.
But China’s premier, Li Keqiang, said the issue should be solved through dialogue and negotiation.
“No one will emerge a winner from a trade war,” Li told a news conference at the conclusion of China’s annual parliamentary meeting. “What we hope is for us to act rationally instead of being led by emotions.”
The tariff package, which Trump plans to unveil by Friday, could be applied to more than 100 products that the president argues were developed using trade secrets that China stole from U.S. companies or forced them to hand over in exchange for access to its massive market.
China argues that trade benefits both countries, but Li did acknowledge U.S. concerns.
“A large trade deficit is not something we want to see,” he said. “What we want to see is balanced trade, otherwise this kind of trade will not be sustainable.”
Li reiterated a pledge made at the opening of the parliamentary session two weeks ago to further open up China’s markets to foreign companies, something he argued was in Beijing’s own interests. And he also vowed stronger protection for foreign companies’ intellectual property.
“With its economy so integrated into the international economy, closing its own door will only block China’s way,” he said.