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TRADE WARS
China warns US against tariffs as trade talks end
by Staff Writers
Beijing (AFP) June 3, 2018

US commerce secretary in China for talks to avoid trade war
Beijing (AFP) June 2, 2018 - US Commerce Secretary Wilbur Ross arrived Saturday in Beijing where he started talks aimed at easing tensions over tariffs that have heightened fears of a trade war between the world's two biggest economies.

Despite announcing a truce earlier this month, the United States is working to finalise planned sanctions on Beijing -- including restrictions on Chinese investment, export controls and 25 percent tariffs on $50 billion in Chinese tech goods.

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

Ross held "small-scale" discussions Saturday afternoon and will begin "formal" negotiations on Sunday, Chinese state television CCTV reported, without elaborating.

He also met with Vice Premier Liu He, who is President Xi Jinping's pointman on economic policy, a US government official told AFP.

His visit comes as fears of an all-out global trade war intensified after the European Union, Canada and Mexico drew up retaliatory measures to Washington's stinging steel and aluminium tariffs that came into effect on Friday.

US President Donald Trump first announced trade sanctions on China in March, largely focused on the Asian giant's theft of US intellectual property.

Beijing on Wednesday lambasted "sudden flip-flops" in US policy after the Trump administration said it would still move to impose the sanctions -- just over a week after the two sides said they had agreed to avert a trade war.

But as Ross arrived, China appeared to soften its position.

"China's door for negotiation remains open," said foreign ministry spokeswoman Hua Chunying on Friday.

The US and China "should adopt a sincere attitude and follow the spirit of equality and mutual respect to seek a win-win solution through dialogue and consultation", she added.

The final list of Chinese imports covered by the US tariffs list will be announced June 15 and imposed shortly thereafter, while the proposed investment restrictions and enhanced export controls will be announced by June 30, according to the White House.

Trump has accused China of forcing American firms to hand over their industrial secrets to Chinese companies in order to do business in the country, a charge that Beijing has rejected.

The US leader has also threatened to impose tariffs on an additional $100 billion in Chinese goods if Beijing retaliates.

Zhu Feng, a professor of international relations at Nanjing University, told AFP he was "not very optimistic" about the outcome of the latest trade negotiations.

"The chance that there will be no trade war at all is low. I'm afraid that the most practical option for the two sides is now to limit the extent of the conflict," he said.

China warned the US that any deals reached during ongoing trade talks would be void if Washington went ahead with imposing tariffs on Chinese goods, as the latest round of negotiations ended on Sunday in Beijing.

The third round of trade talks between the world's two largest economies appeared to fall short of bridging the gap between Beijing and Washington, which are at loggerheads over Chinese trade and industrial policy practices that US President Donald Trump says kill American jobs.

"If the US introduces trade sanctions including tariff increases, all economic and trade achievements negotiated by the two parties so far will be void," said a Chinese government statement issued by the official Xinhua news agency.

The discussions in Beijing, led by US Commerce Secretary Wilbur Ross and Chinese Vice Premier Liu He, were intended to ease tensions after Washington said Tuesday it would follow through with tariffs on Chinese imports despite a truce reached between the two sides last month.

The consensus reached in Washington called on China to increase agricultural and energy imports from the US. Beijing said "positive and concrete progress" was made on those issues with details left for "both sides to finalise".

The visit from the large US delegation, with members from several executive branch agencies, came as fears of an all-out global trade war intensified after the European Union, Canada and Mexico drew up retaliatory measures to Washington's stinging steel and aluminium tariffs that went into effect on Friday.

On Saturday, Washington's main allies delivered a unified message of shock and dismay at a Group of Seven ministerial meeting, urging President Trump to rescind the punishing metal tariffs.

- Trade war fears -

The planned US trade sanctions on Beijing include restrictions on Chinese investment, export controls and 25 percent tariffs on $50 billion in tech goods.

The White House has said it would announce a final list of Chinese imports covered by the US tariffs on June 15, with the other measures to follow later this month.

Beijing warned all the commitments it had made so far were premised on "not fighting a trade war". China has also threatened to hit back with tit-for-tat tariffs on tens of billions of dollars in US goods.

But even as Beijing has maintained it will not back down, it has announced conciliatory measures like lowering tariffs on auto and consumer good imports to address some of the Trump Administration's concerns.

"Our meetings so far have been friendly and frank, and covered some useful topics about specific export items," Ross told the Chinese trade team led by Liu, President Xi Jinping's right hand-man on economic issues, on Sunday morning.

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

"It has been a great pleasure to spend yesterday with you and we are especially grateful for last night's dinner," Ross said as he met with Liu at the Diaoyutai state guesthouse.

Washington's negotiating stance in the trade talks with Beijing has shifted as Trump's team of hardliners and more mainstream advisors compete to push their views.

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

"This isn't just about buying more goods. This is about structural changes," Mnuchin said Saturday.

"There are structural changes that allow our companies to compete fairly. By definition that will deal with the trade deficit," he added.

China 'regrets' EU challenge at WTO
Beijing (AFP) June 4, 2018 - China voiced regret over the European Union's decision to lodge an intellectual property rights complaint at the World Trade Organization, just as Beijing is embroiled in a similar dispute with Washington.

The EU brought the challenge to the WTO on Friday, accusing Beijing of unfairly requiring foreign firms to hand over their technology to Chinese companies in order to do business in China.

"China expresses regret over the EU launching the complaint and will properly handle it according to the WTO dispute settlement procedures," China's Ministry of Commerce said in a statement published late Sunday.

"The Chinese government has always attached great importance to the protection of intellectual property rights and has adopted many powerful measures to protect the legitimate rights and interests of domestic and foreign intellectual property rights holders."

Foreign companies need to form joint ventures with local companies to do business in the massive Chinese market, which often involves sharing their technology and know-how.

US allegations that China steals company secrets are at the heart of the ongoing trade dispute between the world's two biggest economies.

Washington launched its own WTO challenge over alleged Chinese IP breaches on March 23.

The two countries have held a series of negotiations aimed at averting a trade war.

US Commerce Secretary Wilbur Ross and Chinese Vice Premier Liu He held talks at the weekend, which ended with Beijing warning that any deals would be void if Washington follows through on threats to impose massive tariffs on Chinese goods.


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TRADE WARS
China slams US for 'sudden flip-flops' in trade policy
Beijing (AFP) May 30, 2018
China on Wednesday lambasted "sudden flip-flops" in US policy after President Donald Trump said he was moving to finalise trade sanctions against it - even as a US delegation arrived in Beijing for talks. Ten days ago the White House announced a truce in trade hostilities with China, with US Treasury Secretary Steven Mnuchin saying that threatened tariffs on Chinese goods were "on hold". But on Tuesday evening it said that sanctions announced in March - largely focused on China's theft of US i ... read more

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