China warns that any deals are off if U.S. raises tar­iffs

The Mercury News Weekend - - NEWS - By JoeMcDon­ald and PaulWise­man

China promised to “sig­nif­i­cantly in­crease” its pur­chases of U. S. farm, en­ergy and other prod­ucts. BEIJING » China has balked Trea­sury Sec­re­tary Steat step­ping up its pur­ven Mnuchin said then chases of Amer­i­can prodthat the U. S. tar­iffs were ucts, rais­ing the odds of sus­pended and the trade a trade war, if Pres­i­dent war was “on hold.” The Don­ald Trump fol­lows pur­chases are meant to through on his threat to re­duce Amer­ica’s mas­sive tax bil­lions of dol­lars’ trade deficit in goods and worth of Chi­nese im­ports. ser­viceswith China, which

The warn­ing from Beilast year came to $337 biljing came af­ter del­e­ga­tions lion, ac­cord­ing to the U.S. led by U.S. Com­merce SecCom­merce De­part­ment. re­tary Wil­bur Ross and Af­ter the ap­par­ent China’s top eco­cease-fire, global nomic of f icial, financial mar­kets Vice Pre­mier Liu ral­lied in re­lief. He, wrapped up But Trump uptalks on Beijing’s ended the truce pledge to nar­row last Tues­day by reits trade sur­plus. new­ing his threat White House adto im­pose 25 per­vis­ers were in­sist­cent tar­iffs on $50 ing on fun­damen­bil­lion in Chi­nese tal changes in ties high- tech goods. be­tween the world’s two The tar­iffs are meant to big­gest eco­nomic pow­ers. pres­sure Beijing for al­leg

At the out­set of the edly steal­ing trade se­crets event Ross said the two and forc­ing for­eign com­sides had dis­cussed spepa­nies to hand over tech­cific Amer­i­can ex­ports nol­ogy in ex­change for acChina might pur­chase, cess to the Chi­nese mar­but the talks ended with ket. Navarro later called no joint state­ment and neiMnuchin’s con­cil­ia­tory ther side re­leased de­tails. com­ments “an un­fortu

“Both sides ap­pear to nate sound­bite.” have hard­ened their neRoss none­the­less jour­go­ti­at­ing stances and neyed to Beijing Fri­day are wait­ing for the other to work out de­tails of the side to blink,” said Eswar vague agree­ment Mnuchin Prasad, pro­fes­sor of trade had ear­lier cob­bled topol­icy at Cor­nell Univer­gether with the Chi­nese sity. “De­spite the poten­vice pre­mier. China balked tial neg­a­tive reper­cusat mak­ing con­ces­sions un­sions for both eco nomies, less the U.S. lifted the tarthe risk of a full- blown iff threat. China- U. S. trade war, “If the United States in­with tar­iffs and other tro­duces trade sanc­tions trade sanc­tions being im­in­clud­ing a tar­iff in­crease, posed by both sides, has all the eco­nomic and trade risen sig­nif­i­cantly.” achieve­ments ne­go­ti­ated

The United States has by the two par­ties will not threat­ened to im­pose tar­take ef­fect,” said a Chi­nese iffs on up to $50 bil­lion of gov­ern­ment state­ment, Chi­nese prod­ucts in a dis­car­ried by the official Xi­pute over Beijing’s ag­gresnhua News Agency. sive tac­tics to chal­lenge. The ne­go­ti­at­ing process U. S. tech­no­log­i­cal domishould be “based on the nance; Trump has asked premise” of not fight­ing a U. S. Trade Rep. Robert “trade war,” the state­ment Lighthizer to look for an­said. other $100 bil­lion in ChiThe dis­pute with China nese prod­ucts to tax. China comes at the same time has tar­geted $50 bil­lion in Trump has riled some of U.S. prod­ucts for pos­si­ble Amer­ica’s clos­est al­lies re­tal­i­a­tion. with the im­po­si­tion of tar

Ten­sions tem­po­rar­iffs on steel and alu­minum ily eased on May 19 af­ter im­ports.

Ross

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