Last Update 1:5
Wednesday, 18 September 2019

China warns US tariffs will 'escalate trade friction'

AP , Thursday 22 Aug 2019
File Photo: Shipping containers are seen at a port in Shanghai, China July 10, 2018 (Reuters)
Views: 945
Views: 945

China appealed to Washington on Thursday to ``meet each other halfway'' and settle a trade war instead of going ahead with planned tariff hikes Beijing warned will trigger retaliation.

Exporters are preparing for a Sept. 1 increase in US duties in a fight over trade and technology. Those are due to go ahead on more than $100 billion of Chinese goods despite the Trump administration's decision to postpone some other planned increases to mid-December.

New US tariffs will ``lead to an escalation of economic and trade friction,'' a Ministry of Commerce spokesman, Gao Feng, said at a news briefing.

The United States is pressing China to narrow its trade surplus and roll back plans for government-led development of global competitors in robotics and other technologies. Beijing's trading partners say those plans violate its market-opening commitments. Some American officials worry they might erode US industrial leadership.

Negotiations are deadlocked over how to enforce a deal. Beijing says punitive tariffs imposed by President Donald Trump on Chinese products must be lifted as soon as an agreement takes effect. Washington wants to keep some to ensure Beijing carries out any promises it makes.

``We hope the United States and China can meet each other halfway and find a solution,'' Gao said.

US and Chinese negotiators are due to meet in September in Washington. The last round of talks in Shanghai in July ended with no indication of progress.

Negotiators talked by phone Aug. 13 and agreed to talk again within two weeks, Gao said. He gave no details of the conversation.

Gao repeated a Chinese threat of unspecified ``corresponding countermeasures'' if Trump's tariff hike goes ahead.

The United States has imposed 25% tariffs on $250 billion of Chinese products. Beijing retaliated with its own penalties on $110 billion of goods from the United States.

Trump earlier announced plans to impose 10% duties on $300 billion of Chinese goods, extending penalties to almost everything China sells the United States. He later postponed the tariff hike on about 60% of those goods to Dec. 15.

Due to their lopsided trade balance, Beijing is running out of goods for retaliation but has tried to pressure Washington by delaying customs clearance for US companies in China and postponing issuing licenses in insurance and other fields.

Gao also said Beijing is working on a planned corporate blacklist of ``unreliable entities'' that might face curbs on their operations but gave no timeline.

China announced plans for that list after Washington imposed curb on sales of US technology to telecom equipment producer Huawei Technologies Ltd.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.