China says tariff threat ‘justified’

This photo taken on August 2, 2018 shows workers at a swimwear factory in Yinglin town in Jinjiang, in China's eastern Fujian Province. China's garments industry is expected to be affected with the escalating US-China trade war. (AFP photo)
Updated 05 August 2018

China says tariff threat ‘justified’

  • China and the US 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 US technological know-how

SINGAPORE: China’s foreign minister said on Saturday that his country’s threat to impose retaliatory tariffs on $60 billion of US goods in an escalating trade dispute was “fully justified.”

Beijing threatened on 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.

China and the US 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 US 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.” 

Wang also hit back at comments by top White House economic adviser 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.

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.

But Trump raised the stakes this week with a threat to lift the tariff rate.

China has said that new duties will be applied only if Washington pulls the trigger on its new tariffs.

Decoder

China-US Trade War

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 that would be hit with 10 percent import duties.


US President Trump does not want to do business with China’s Huawei

Updated 19 August 2019

US President Trump does not want to do business with China’s Huawei

  • US Commerce Department expected to extend a reprieve that permits Huawei to buy supplies from US companies to service its customers

WASHINGTON: US President Donald Trump on Sunday said he did not want the United States to do business with China’s Huawei even as the administration weighs whether to extend a grace period for the company.
Reuters and other media outlets reported on Friday that the US Commerce Department is expected to extend a reprieve given to Huawei Technologies Co. Ltd. that permits the Chinese firm to buy supplies from US companies so that it can service existing customers.
The “temporary general license” will be extended for Huawei for 90 days, Reuters reported, citing two sources familiar with the situation.
On Sunday, Trump told reporters before boarding Air Force One in New Jersey that he did not want to do business with Huawei for national security reasons.
He said there were small parts of Huawei’s business that could be exempted from a broader ban, but that it would be “very complicated.” He did not say whether his administration would extend the “temporary general license.”
Speaking earlier on Sunday, National Economic Council director Larry Kudlow said the Commerce department would extend the Huawei licensing process for three months as a gesture of “good faith” amid broader trade negotiations with China.
“We’re giving a break to our own companies for three months,” Kudlow said on NBC’s “Meet the Press.”