China vows to hit back over USA proposal for fresh tariffs

by Garry Watts July 12, 2018, 7:31
China vows to hit back over USA proposal for fresh tariffs

Trump administration officials, for their part, argue that the Obama administration's preferred methods for dealing with unfair trade practices - negotiations and litigation at the World Trade Organization - were ineffective, and it is time to take a harder line.

Since March, Beijing and Washington have been embroiled in a tit-for-tat trade battle, with both countries releasing tariff proposals in retaliation. It said Beijing would take unspecified "necessary countermeasures" to protect its "core interests".

Lighthizer said the initial $50 billion in USA tariffs were aimed at goods that "benefit from China's industrial policy and forced technology transfer practices".

Overnight, Donald Trump began the process of slapping 10% tariffs on a further $200bn of imports from China, on top of the $34bn (soon to be $50bn) imposed last week.

The United States is playing a risky game as China is one of the United States' most important trading partners, with about $630 billion (-$130 deficit) in trade done in 2017, not far behind Canada ($670 billion, +$8 billion surplus) and just ahead of Mexico ($616 billion, -$64 billion deficit).

The initial United States tariff list focused on Chinese industrial products in an attempt to limit the impact on American consumers.

China immediately retaliated with duties on the same value of USA goods, including soybeans and cars.

"They continue to insist the problems we've identified are not real problems", a senior administration official said.

Oil prices climb on tightening USA market
Iran and Saudi Arabia broke off diplomatic relations in 2016 and are locked in several proxy wars in the Middle East, including in Yemen.

But it could interfere with American automakers and retailers who see China as a key market by regulating import licenses or investigating US firms for tax, environmental, and antitrust concerns, according to the Associated Press.

The U.S. Trade Representative announced the possible second round of tariff hikes on Tuesday targeting a $200 billion list of Chinese goods ranging from burglar alarms to mackerel.

The Retail Industry Leaders Association, a lobby group representing the largest United States retailers, said: "The president has broken his promise to bring 'maximum pain on China, minimum pain on consumers'".

Instead, its heavily regulated economy gives Beijing tools to disrupt operations for American automakers, restaurant chains and other companies that are looking to China to drive revenue growth. Regulators can deny or cancel licenses or tie up companies by launching tax, environmental or anti-monopoly investigations.

China's stocks slumped following news of the new tariffs after three days of gains, and the yuan weakened.

"Trade experts we have consulted point to the potential for anti-U.S. social media campaigns, delays or blockage of regulatory approvals, travel bans, investment restrictions, among other options", Raymond James analyst Ed Mills said in a report.

While China's theft and coercion of intellectual property from foreign companies is a widely acknowledged problem, trade experts are largely skeptical of Mr. Trump's strategy to deal with it through punitive tariffs.

A public comment period, during which the Office of the U.S. Trade Representative is seeking comment to the Section 301 Committee, runs through August 17.

Recommended News


TOP News

Trump says nuclear talks with North Korea 'going well'
Team Prosperity defeated Team Peace 103-102, with North Korea's Ro Suk Yong scoring 18 points, according to pool reports. Pyongyang has often had its own complaints about Washington over slow delivery of aid and imposition of sanctions.

Ky. Judge Not On Top 3 List For Supreme Court Position
The 51-year-old judge from central casting -just like Neil Gorsuch-is not as well-known as front-runner U.S. Wade decision that legalized abortion nationwide - were appointed by Republican presidents".

These Are The Four Charges Handed To Najib Today At Court
United States prosecutors had previously said a person described as "Malaysian Official 1" had received more than $1bn from 1MDB. The scandal is now the subject of money laundering investigations in six counties including the USA.

5 reasons to love the LeBron James signing
Though with James joining the team this week, the Lakers' starting lineup is going to look completely different next season. Under his new contract, he'll make more than half that amount again in just four years.

France Hands Belgium First Loss, Advances To Finals
The most unpredictable and entertaining FIFA World Cup in recent memory wraps up this week, with just four matches left to be played.

Trump Administration Seeks More Time to Reunite Families Separated at Border
Bush, late last month ordered federal officials to reunite all families within 30 days, and children under 5 within two weeks. Marshals Service. "Any confusion is due to a broken immigration system and court orders", Azar told reporters on Thursday.

Belgian sights firmly set on World Cup victory, says defender Vermaelen
The City midfielder scored a stunning effort from outside the box as Belgium overcame favourites Brazil 2-1 in the quarter-finals on Friday.

Trump stumps in Montana: "It’s time to retire liberal Democrat Jon Tester".
Trump also mocked journalists for questioning his readiness for his upcoming summit with Russian President Vladimir Putin . The president has made the Montana race a priority as he hopes to help Republicans tighten the partys hold on the Senate.

How Many Post-Credits Scenes Does Ant-Man and The Wasp Have?
Bill Foster), Walton Goggins (Sonny Burch), Bobby Cannavale (Paxton), Judy Greer (Maggie), and T.I. Last we saw Paul Rudd as Scott Lang on the big screen was in 2016's Captain America: Civil War .

Brazil Coach To Play Filipe Luis Ahead Of Marcelo Against Mexico
Brazil is going out of its way to defend its World Cup preparations and show its players' injuries can't be blamed on excessive training.