US, China raise tariffs in new round of trade dispute

An online video about U.S.-China trade tensions produced by China's state television broadcaster plays on a computer screen in Beijing, China, Thursday, Aug. 23, 2018. The United States and China imposed more tariff hikes on billions of dollars of each other's automobiles, factory machinery and other goods Thursday. Ahead of trade talks in Washington, Chinese state TV mocked President Donald Trump with a sarcastic video posted on the YouTube and other social media pages of its international arm, China Global Television Network. (AP Photo/Mark Schiefelbein)

US, China impose tariff hikes on additional goods in new escalation of battle over Beijing's technology policy

BEIJING — The United States and China went ahead with tariff hikes on billions of dollars of each other's automobiles, factory machinery and other goods Thursday in an escalation of a battle over Beijing's technology policy that companies worry will chill global economic growth.

The increases came as envoys met in Washington for their first high-level talks in two months. They gave no sign of progress toward a settlement over U.S. complaints that Beijing steals technology and its industry development plans violate Chinese free-trade commitments.

The 25 percent duties, previously announced, apply to $16 billion of goods from each side including automobiles and metal scrap from the United States and Chinese-made factory machinery and electronic components.

In the first round of tariff hikes, U.S. President Donald Trump imposed 25 percent duties on $34 billion of Chinese imports on July 6. Beijing responded with similar penalties on the same amount of American goods.

The Chinese government criticized Thursday's U.S. increase as a violation of World Trade Organization rules and said it would file a legal challenge.

A foreign ministry spokesman, Lu Kang, declined to give details of the Washington talks.

"We hope the U.S. side will get along with us to strive for a good result from the talks with a reasonable and practical attitude," said Lu.

Beijing has rejected U.S. demands to scale back plans for state-led technology development that its trading partners say violate its market-opening commitments. American officials worry they might erode the United States' industrial leadership.

With no settlement in sight, economists warn the conflict could spread and knock up to 0.5 percentage points off global economic growth through 2020.

Ahead of the Washington talks, Chinese state TV mocked President Donald Trump with a sarcastic video posted on the YouTube and other social media pages of its international arm, China Global Television Network.

"You are great," said a presenter on the nearly three-minute-long English-language clip, reading a letter that pays a satirical tribute to Trump.

"On behalf of doctors, thank you for pointing out the need to wean off American goods like bourbon and bacon," the presenter says, referring to products on which China imposed retaliatory tariffs.

The video appeared to have been removed Thursday from CGTN's social media accounts.

Trump has proposed another possible round of tariff hikes imposing 25 percent increases on an additional $200 billion of Chinese goods. Beijing issued a $60 billion list of American imports for retaliation if Washington goes ahead with that.

That smaller target list reflects the fact that Beijing is running out of American goods for retaliation due to their lopsided trade balance.

China's imports from the United States last year totaled about $130 billion. That leaves about $20 billion for penalties after tariffs already imposed or planned on a total of $110 billion.

Chinese authorities have said they will take "comprehensive measures," which companies worry could mean targeting operations of American businesses in China for disruption.

Related News

Merkel appeals to Russia to enable Syria...

Sep 5, 2016

German Chancellor Angela Merkel is renewing an appeal to Russia to enable a cease-fire in Syria and...

May says Britain still inspires confidence...

Sep 5, 2016

After meeting with other world leaders during the G-20 summit, British Prime Minister Theresa May...

Asian stocks drift as Fed rate outlook eases on...

Sep 7, 2016

Asian stocks meandered Wednesday after a weak report on U.S. service companies reinforced...

Asian stocks mixed on stronger China trade,...

Sep 8, 2016

Asian stock markets were mixed Thursday after China reported unexpectedly strong trade and Wall...

China imports grow in August for 1st time in 2...

Sep 8, 2016

China trade showed unexpected strength in August in a positive sign for global economic growth

China's electric vehicle industry shaken by...

Sep 13, 2016

China's electric vehicle industry, a flagship for Beijing's technology ambitions, has been rocked...

About Us

Daily World Web took the initiative to utilize the development in cloud and AI technology to create a free, instantaneous and borderless flow of news, the way it should be.

Contact us: sales[at]dailyworldweb.com

Subscribe Now!