ZCZC
BCN-24
CHINA-US-TRADE-POLITICS-ASEAN
China says tariff threat against US ‘justified’
SINGAPORE, Aug 4, 2018 (BSS/AFP) – China’s foreign minister said Saturday
that his country’s threat to impose retaliatory tariffs on $60 billion of
American goods in an escalating trade spat was “fully justified”.
Beijing threatened Friday to bring in the levies on products ranging from
beef to condoms, after US President Donald Trump’s administration upped the
ante in its plans for additional tariffs on Chinese goods worth $200 billion.
Washington suggested the rate on the proposed extra tariffs could be
increased from 10 to 25 percent.
The two countries have been embroiled for months in a trade conflict that
has threatened to hurt consumers in both countries.
Washington claims that China’s export economy benefits from unfair
policies and subsidies, as well as theft of American technological know-how.
Speaking on the sidelines of a security forum in Singapore, Foreign
Minister Wang Yi said China’s threat of retaliatory tariffs was “fully
justified and necessary”.
“These are measures taken out of the consideration for upholding the
interests of the Chinese people,” he said, speaking through a translator.
He said the move was also aimed at upholding the “global free trade
regime” that was underpinned by the World Trade Organization.
Wang also hit back at comments by top White House economic advisor Larry
Kudlow, who ridiculed China’s tariff threat as “weak” and said the world’s
second-largest economy was in significant “trouble”.
“As to whether China’s economy is doing well or not, I think it is all too
clear to the whole international community,” Wang said, adding that China
contributed a huge amount to global economic growth.
“I don’t see why he would come to the conclusion that China’s economy is
not doing well.”
In early July, the US imposed 25 percent tariffs on $34 billion of Chinese
goods, with another $16 billion to be targeted in coming weeks, sparking
retaliatory measures from China.
Days later, Washington unveiled a list of another $200 billion in Chinese
goods, from areas as varied as electrical machinery, leather goods and
seafood, that would be hit with 10 percent import duties.
But Trump raised the stakes this week with his threat to lift the tariff
rate.
China has said new duties will be applied only if Washington pulls the
trigger on its new tariffs.
The Republican president has been keen to show he is tough on trade ahead
of tricky congressional elections in November — but there are growing signs
of concern in the White House that the dispute could affect Trump’s political
base.
BSS/AFP/HR/1425