Published: Mon, September 24, 2018
Worldwide | By Isabel Fisher

China cancels trade talks with US

China cancels trade talks with US

The United States and China imposed fresh tariffs on each other's goods on Monday as the world's biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to knock global economic growth.

"We're going to get an outcome which forces China to behave in a way that, if you want to be a power, a global power - transparency, rule of law, you don't steal intellectual property - the fundamental principles of trade around the world. those are things the American people are demanding and the American workers deserve", he added.

America has defended its policy, saying it is responding to Chinese state backing if its industries, which goes against worldwide trade rules.

"It has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure", the report said.

Beijing's new levies will be 5-10 percent.

After the $200 billion tariffs officially came into force Monday, Beijing reportedly cancelled scheduled talks with Washington, which had been meant to defuse trade tensions.

Previous talks in late August saw little progress.

Economists warned that a protracted bilateral dispute would eventually harm growth not just in the U.S. and China, but across the broader global economy.

Dialogue between the world's two biggest economies appears severed.

"With generic polls favoring the Democrats, they may feel that the trade environment may be less hostile after November 6", said ING's chief Asia economist, Rob Carnell.

Secretary of State Mike Pompeo vows the United States will be victorious in any trade war with China, a day before the Trump administration's latest tariffs on Chinese imports go into effect.

The products spared also include smartwatches and Bluetooth devices like the iPhone and Fitbit, child safety products such as high chairs, auto seats and playpens, and certain health-and-safety products such as bicycle helmets, United States officials said.

The two are also at odds over Beijing's wooing of Taiwan's diplomatic allies, treatment of religious groups and claims to disputed islands in the South China Sea.

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