China says US ‘disappoints’ the world with trade war

BEIJING: China warned the United States that upping the ante in a tit-for-tat trade war will “only serve to disappoint” the world as Washington threatened to raise the tariff rate on the next US$200 billion of Chinese imports.

Beijing said it would be forced to take countermeasures to defend Chinese interests, free trade and the international order.

“The US has no regard for the world... playing both soft and hard ball with China will not have any effect, and only serve to disappoint the countries and territories opposed to a trade war,” China’s Ministry of Commerce said in a statement, adding that it still hopes to turn the situation around.

Foreign ministry spokesman Geng Shuang called Washington’s actions ‘blackmail’ and urged the United States “to return to rationality and not act on impulse. It will only hurt themselves.”

President Donald Trump asked the US Trade Representative to consider increasing the proposed tariffs to 25 per cent from the planned 10 per cent, USTR Robert Lighthizer said on Wednesday.

“We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against US workers, farmers, ranchers and businesses,” Lighthizer said in a statement.

Officials, however, downplayed suggestions the move was intended to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Trump’s tariffs by making imports cheaper.

The US dollar has been strengthening since April as the central bank has been raising lending rates, which draws investors looking for higher returns.

“It’s important that countries refrain from devaluing currencies for competitive purposes,” a senior administration official told reporters.

“But I wouldn’t draw the conclusion that the announcement we’re making today is directly linked to any one practice.”

Washington and Beijing are locked in battle over American accusations that China’s export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.

Trump has threatened to slap tariffs on virtually all of China’s exports to the United States.

Officials said they remained in regular contact with their Chinese counterparts but could announce no new meeting. — AFP

Photo shows workers at a swimwear factory in Yinglin town in Jinjiang, in China’s eastern Fujian Province. China’s top envoy, Foreign Minister Wang Yi, called on the United States to remain ‘cool-headed’ on August 2 as Washington threatened to raise...