China warns trade deals off if United States imposes tariffs

Adjust Comment Print

China today warned the United States that trade negotiations would be void if it imposes tariffs on Chinese goods, as the latest round of talks organised to avert a trade war between the two largest economies of the world ended here.

China made the statement after talks with a usa delegation led by Commerce Secretary in Beijing on Saturday and Sunday.

"If the United States launches trade sanction measures, including the imposition of tariffs, then all the economic and trade benefits negotiated by both sides are not going to take effect".

President Donald Trump announced that the US will forge ahead with a plan to slap tariffs on $50 billion of Chinese imports just 10 days after the two reached the truce agreement in Washington.

The discussions are meant to ease tensions after Washington said it would follow through with tariffs on Chinese imports despite a truce reached between the two sides in the USA last month.

However, the Trump administration's announcement late Tuesday that it would impose 25 percent tariffs on $50 billion worth of Chinese technology by the end of this month cast doubt on trade talks between the two countries, the AP noted.

Ross had been expected to seek clear commitments from Beijing to boost Chinese imports of United States products in areas such as energy and agriculture.

Private sector analysts say while Beijing is willing to compromise on its trade surplus, it will resist changes that might threaten plans to transform China into a global technology competitor.

"All economic and trade outcomes of the talks will not take effect if the United States side imposes any trade sanctions including raising tariffs", a statement from China's official Xinhua News Agency said.

Beijing said the 2 sides had made "positive and concrete progress" on matters like increasing agricultural and energy imports but said details were left for "both sides to finalize".

The two governments released no schedule for the talks, but China said earlier Ross was due to be in Beijing through to Monday.

Amazon to block Aussie shoppers from USA website
In a statement about the change, Amazon said it regretted "any inconvenience this may cause customers". New Zealand had also already applied GST to digital services from offshore, such as Netflix in 2016.

China has also threatened to hit back with tit-for-tat tariffs on tens of billions of dollars in U.S. goods.

An apparent truce was reached in Washington last month when Mr Liu said the two sides would discuss ways to enhance trade instead of slapping escalating tariffs on each other. The U.S. says China's outsized production artificially depresses global metals prices, endangering U.S. national security by undermining its domestic steel industry.

USA leverage against China appears to have been weakened by a sour mood among USA allies after Washington imposed tariffs on steel and aluminum from the European Union, Canada and Mexico.

Tensions temporarily eased on May 19 after China promised to "significantly increase" its purchases of USA farm, energy and other products.

But China warned all the results were premised on "not fighting a trade war".

In the U.S., China hawks have been wary of the deal that Secretary Ross pursued in Beijing.

Ross and the large American delegation had dinner Saturday evening with their Chinese hosts.

"It is very clear that China has no interest in progressing the talks if the United States insists on issuing a tariff announcement in mid-June", said ING's economist for Greater China Iris Pang.

CCTV reported Ross and his delegation had an initial meeting at the Diaoyutai State Guest House in the afternoon, and the two sides would hold a formal meeting tomorrow. Germany is also hoping its steel exports to the U.S. will be exempted from sanctions.

Treasury Secretary Steven Mnuchin, who announced the tariff truce with China, said at the G7 summit in Canada that the USA was pushing for "structural changes" to the Chinese economy.

Comments