Date
24 September 2018
A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the United States and China. Photo: Reuters
A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the United States and China. Photo: Reuters

China won’t surrender to US demands in trade talks: state paper

China will not buckle to US demands in any trade negotiations, the major state-run China Daily newspaper said in an editorial on Friday, after Chinese officials welcomed an invitation from Washington for a new round of talks, Reuters reports.

China and the United States are set to return to the table with the threat of new US tariffs looming after Treasury Secretary Steven Mnuchin extended the invitation to counterparts in Beijing.

The official China Daily said that while China was “serious” about resolving the stand-off through talks, it would not be rolled over, despite concerns over a slowing economy and a falling stock market at home.

“The Trump administration should not be mistaken that China will surrender to the US demands. It has enough fuel to drive its economy even if a trade war is prolonged,” the newspaper said in an editorial.

If the US imposed new levies on Chinese imports then Beijing “will not hesitate to take countermeasures against US tariffs to safeguard China’s interests”, it added.

US President Trump said on Twitter on Thursday that the US holds the upper hand in talks.

“We are under no pressure to make a deal with China, they are under pressure to make a deal with us,” Trump tweeted. “Our markets are surging, theirs are collapsing.”

Chinese Foreign Ministry spokesman Geng Shuang told reporters on Thursday that China welcomed the invitation, and the two countries were discussing the details.

A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the US and China, and raise costs for companies and consumers.

However, the last round of talks, between mid-level US and Chinese officials in August, failed to reach any agreement.

The US administration is readying a final list of US$200 billion in Chinese imports on which it plans to levy tariffs of 10-25 percent in coming days, which would ramp up the trade war between the world’s two largest economies.

So far, the US and China have hit US$50 billion worth of each other’s goods with tariffs in a dispute over US demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs and better protecting American intellectual property.

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CG

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