BEIJING: China accused the United States of “repeatedly abusing” trade practices, as Beijing braced on Thursday for an imminent announcement from US President Donald Trump slapping more tariffs on Chinese imports. The US tariffs on Chinese imports worth as much as up to $60 billion are set to be unveiled later on Thursday, raising fears that the world’s two largest economies could be sliding towards a trade war.
On Wednesday, the World Trade Organization ruled that Washington had not fully complied with a 2014 ruling against its anti-subsidy tariffs on various Chinese products ranging from solar panels and wind towers to steel cylinders and aluminium extrusions.
The WTO ruling “proves that the US side has violated WTO rules, repeatedly abused trade remedy measures, which has seriously damaged the fair and just nature of the international trade environment, and weakened the stability of the multilateral trading system,” China’s commerce ministry said late on Wednesday.
The tariffs Trump is set to announce will be imposed under Section 301 of the 1974 US Trade Act, following an intellectual property probe launched in August last year.
Trump is accusing Beijing of compelling US firms to transfer their intellectual property (IP) to China as a cost of doing business there.
Trade wars are “good” and “easy to win”, said Trump, having made election campaign promises to get tough with China over its huge surplus with the United States.
China has repeatedly said it has no wish to fight a trade war, but warned that it is ready if needed.
“With regards to the Section 301 investigation, China has expressed its position on many occasions that we resolutely oppose this type of unilateral and protectionist action by the US,” the Commerce Ministry said in a fresh statement on Thursday.
“China will not sit idly by while legitimate rights and interests are hurt. We must take all necessary measures to firmly defend our rights and interests.”
The Wall Street Journal reported that Beijing has already prepared to strike back with tariffs aimed at Trump’s support base, including levies targeting US agricultural exports. US Trade Representative Robert Lighthizer said on Wednesday the tariffs would target China’s high-technology sector and there could also be restrictions on Chinese investments in the United States.
Other sectors like apparel could also be hit. Jacob Parker, Beijing-based vice president of China operations at the US-China Business Council said the group wanted to know what action the US administration wants China to take to improve protection for intellectual property, and over forced technology transfer. — Reuters
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