Published: Mon, March 26, 2018
Worldwide | By Isabel Fisher

China hits back at the United States where it hurts

China hits back at the United States where it hurts

China on Friday declared plans to levy additional duties on up to $3 billion of USA imports, including fruit and wine, in response to US import tariffs on steel and aluminium, imposed after a separate USA probe.

China's commerce ministry proposed the list, which contains 128 US products.

"The measures could include tariffs between 30 and 60 billion dollars, as well as restrictions on investment, " USA media have reported.

A 25 percent tariff on pork and aluminum imports is also being considered.

President Donald Trump is expected to unveil up to US$60 billion in new tariffs on Chinese imports by Friday, targeting technology, telecommunications and intellectual property, two officials briefed on the matter said Monday.

China said that a ruling by the World Trade Organization (WTO) on Obama-era USA tariffs showed that the United States was a "repeat abuser" of trade remedy measures, and urged it to take immediate action to correct faulty practices. In the first stage, the 15% tariff will be imposed if the two countries could not reach an agreement on trade issues within the scheduled time.

One Chinese official told the media that China is "keeping its power dry by not touching the big-ticket imports from US". China signed major trade deals worth about Dollars 250 billion including buying 300 planes from Boeing during Trumps visit here previous year.

Wilder said he believed the Chinese leadership understood the administration's trade actions were largely related to American domestic political concerns.

China also needs to remove an "implicit government guarantee for state companies", Gurria said.

US Trade Representative Lighthizer warned on Wednesday that Washington would take "counter measures" if Beijing targeted US agriculture.

China's response Friday appeared to be aimed at increasing domestic US pressure on Trump by making clear which exporters, including farm areas that voted for him in 2016, might be hurt.

"Obviously if US prices increase you're going to see an impact", said council vice president Karl Littler.

Further retaliation by China could open the door for more Canadian exports to replace higher-priced American goods, particularly in agriculture.

"If I were in the government, I would probably hit soybeans first, then hit autos and airplanes", said the respected Lou Jiwei, now chairman of the National Council for Social Security Fund (NCSSF).

Amid fears of a potentially devastating trade war between the USA and China, Washington has urged Beijing not to implement the ban on United States garbage and recyclable materials that Asia's giant threatened to impose last July.

"We are fully prepared to firmly defend our interests", he said.

China denies it trades unfairly.

In August 2017, the United States initiated an investigation into Chinese intellectual property and technology transfers under Section 301 of the Trade Act of 1974.

The United States should not underestimate China's determination to protect itself, the paper said in an article signed "Zhong Sheng", or "Voice of China", used to express its views on foreign affairs. "China has and continues to be an important market for ethanol and for dried distiller's grains, and we want to remove any of these unnecessary barriers as soon as possible".

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