Imposing More Tariffs Won’t ‘Make American Great Again,’ Says Chinese Foreign Ministry
The U.S. and China continue escalating their war of words over the current impasse in their bilateral trade talks, and with the squabble comes increasing uncertainty over Section 301 tariffs on Chinese goods and retaliatory duties against U.S. exports. The public bickering comes roughly three weeks before Presidents Donald Trump and Xi Jinping are expected to meet at the G20 summit in Osaka, Japan, where it was once hoped the two leaders would sign a comprehensive agreement to curb China’s allegedly unfair trade behavior.
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With no new negotiating rounds scheduled before the G20, the two sides are locked in an increasingly hostile give-and-take over which is to blame for the current standoff. Nearly a month after the List 3 tariffs increased to 25 percent (see 1905090018), also looming is the threat of List 4 tariffs of up to 25 percent on all remaining Chinese imports not previously dutied, including broad swaths of consumer tech goods (see 1905140025). Monday is the deadline for submitting requests to testify at the List 4 hearings that begin June 17.
Contributing to the public friction was China’s release Sunday of a “white paper” accusing the U.S. of “turning a blind eye to China's unremitting efforts and remarkable progress in protecting intellectual property and improving the business environment for foreign investors.” The U.S., said the white paper, “issued a myriad of slanted and negative observations, and imposed additional tariffs and investment restrictions on China, provoking economic and trade friction between the two countries.”
The U.S. is “disappointed” the Chinese decided “to pursue a blame game misrepresenting the nature and history of trade negotiations between the two countries,” responded the Treasury Department and the Office of the U.S. Trade Representative Monday. “It is important to note that the impetus for the discussions was China’s long history of unfair trade practices. Our negotiating positions have been consistent throughout these talks, and China back-pedaled on important elements of what the parties had agreed to.”
The joint U.S. statement “is full of sophistry that confounds black and white,” retorted a Chinese Foreign Affairs Ministry spokesperson Tuesday. “Every setback in the trade talks was caused by the US side for its flip-flopping and breaking commitments,” he said. The administration’s “accusation” on China's backtracking on previous commitments “is entirely an attempt to distort the facts and blame the innocent party for its own wrongdoing,” he said.
Imposing additional tariffs, as the administration is threatening to do with List 4, “will not make America great again,” said the spokesperson, seizing on Trump’s 2016 campaign slogan. “On the contrary, the US will only get hurt. China has the resolve and capability to defend its own legitimate rights and interests. We hope the US can timely grasp the situation, return to the right track and meet China half way.” USTR and Treasury didn’t comment Tuesday.