Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
China has reacted with surprise to a widely-unexpected announcement by the US to proceed with $50bn of tariffs on Chinese imports.
On Tuesday, The Trump administration said it would impose 25 per cent tariffs on selected Chinese goods focusing on tech sectors, The Financial Times reports, unless China addresses intellectual property infringements. Investment and visa restrictions will also be implemented.
The shock announcement reverses what seemed to be positive progress in the most recent round of trade negotiations. Following those talks, US Treasury Secretary Steve Mnuchin said a looming US-China trade war was “on hold.” That no longer seems the case.
Responding to the announcement, China has declared that it is ready to fight any trade war, Reuters reports, with state-run media outlets striking a resolute tone.
The Global Times, a Communist Party-run media outlet, said “The Chinese government will have the necessary measures in place to deal with a US withdrawal from any settled agreement. If the US wants to play games, then China would be more than willing to play along and do so until the very end.”
China’s Commerce Ministry expressed surprise at the move. In a statement, it said: “We feel both surprised and unsurprised at the tactical statement issued by the White House. This is obviously contrary to the consensus reached between the two sides in Washington not long ago.”
According to the Sydney Morning Herald, the White House has set a deadline of 15 June by which to identify Chinese products to be targeted, with the tariffs taking effect “shortly afterwards.”
Investment restrictions and export controls to prevent “Chinese persons and entities” gaining “industrially significant technology” would be announced on June 30. Visa limits would be imposed on Chinese students wanting to study robotics, aviation and high-tech manufacturing fields in the US, and Chinese researchers would face tougher security screenings, from 11 June, the Herald reports.
The latest escalation in tensions between the world’s two largest economies follows reports of clashes at the WTO over forced technology transfer – a major cause of contention between the two parties as China covets the US’s position as the global leader in high-tech sectors.
All eyes will now be on the next round of trade negotiations, which are expected to take place between 2-4 June when US Commerce Secretary Wilbur Ross heads to China.
