Published: Sun, June 03, 2018
Markets | By Erika Turner

China Slates US Unilateralism And Protectionism After Tariff Move

China Slates US Unilateralism And Protectionism After Tariff Move

The president has bemoaned the massive US trade deficit with China - $337 billion a year ago - as evidence that Beijing has been complicit in abusive trading practices and outsmarted his predecessors.

That, at least, is the view of many longtime trade analysts and China watchers. China is not willing to see an escalation in China-US trade frictions. "By assaulting all our allies, we leave ourselves standing unprotected and by ourselves in a way we really never have been".

Separately, on Friday, the US reached a deal on ZTE Corp. that will allow the Chinese telecommunications giant to remain in business.

The U.S. government has said a team of commerce, treasury and agriculture officials were in Beijing to make preparations.

China promised to significantly increase its purchases of American goods and services to reduce the USA trade deficit. Those multinationals are often among the largest employers and capital spenders in the U.S. majority are public companies whose shares are widely held in U.S. defined benefit contribution plans like retirement accounts and 401 (K) s. Walmart (WMT), the largest private employer in America, nows operates 424 stores in China after entering the market in 1996.

"We had very productive discussions in the G7 about certain non-market issues, certain technology transfers and other issues with China that we all share the same common objectives on", Mnuchin said.

In the statement announcing the new investment restrictions, the U.S. government said it will "continue to pursue litigation at the WTO" against China. All vowed to retaliate by penalizing American products.

The Trump administration plans to go ahead with tariffs on Chinese goods in the next month.

Now, the turning to Beijing and to a standoff that has taken some confusing turns.

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"If the United States insists on acting arbitrarily and recklessly, China will take firm and powerful measures to safeguard its own legitimate rights", Hua said.

The Donald Trump administration stated that it would crack down on "illegal" Chinese trade practices by June 30.

China pressed the give ZTE a break after the Commerce Department cut off the company from United States suppliers to punish it for allegedly lying to American officials in a sanctions case.

This was considered a sign that the brewing trade war between the world's two biggest economies was averted for the time being.

But they breathed a sigh of relief earlier this month when the US and China declared a cease-fire after talks in Washington.

China last week gave state-controlled companies the nod to resume buying the oilseed, used in animal feed, after Beijing agreed on May 19 to import more goods and services from the US, its top trading partner, in order to ease the $335 billion trade gap between the two countries.

The truce didn't last long.

Hitting back at the Trump administration's threat to impose a 25 percent tariff on $50 billion goods imported from China, Foreign Ministry spokesperson Hua Chunying said, "In global relations, every flip-flop and U-turn by a country will undermine and hurt its own credibility".

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