China urged the United States to return to reason after the Trump administration sought to ratchet up pressure for trade concessions by proposing a higher 25 percent tariff on US$200 billion worth of Chinese imports, Reuters reports.
US Trade Representative Robert Lighthizer said on Wednesday that President Donald Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet US demands and has imposed retaliatory tariffs on US goods.
Trump’s threats of higher tariffs weighed on China’s financial markets. But Chinese Foreign Ministry spokesman Geng Shuang reiterated at a regular news briefing that the US efforts at “blackmail” would fail.
“We would advise the United States to correct its attitude and not try to engage in blackmail. This won’t work on China,” Geng said.
“Secondly, we would advise the US side to return to reason, and not blindly let emotions affect their decisions, because in the end this will harm themselves,” he said.
Chinese shares fell on Thursday, and so far this year, the Shanghai Composite Index has slumped more than 16 percent, the world’s second-worst performing stock index.
The Chinese yuan also ticked lower against the US dollar, extending its year-to-date decline to more than 4.5 percent.
There have been no formal talks between Washington and Beijing for weeks over Trump’s demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high-technology industries.
Geng said China’s door to dialogue on the trade dispute is open, but that it has to be based on mutual respect and equality.
“The current unilateral threats and pressure from the United States will only backfire,” he said.
Two Trump administration officials told reporters on a conference call that Trump remains open to communications with Beijing and that through informal conversations the two countries are discussing whether a “fruitful negotiation” is possible.
The higher tariff rate, if implemented, would apply to a list of goods valued at US$200 billion identified by the USTR last month as a response to China’s retaliatory tariffs on an initial round of US tariffs on US$34 billion worth of Chinese electronic components, machinery, autos and industrial goods.
Trump has ultimately threatened tariffs on over US$500 billion in Chinese goods, covering virtually all US imports from China.
The USTR said it will extend a public comment period for the US$200 billion list to Sept. 5 from Aug. 30 due to the possible tariff rate rise.
The list, unveiled on July 10, hits American consumers harder than previous rounds, with targeted goods ranging from Chinese tilapia fish and dog food to furniture, lighting products, printed circuit boards and building materials.
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