USA announces 25 pct tariff on Chinese goods

Jun 03, 2018, 21:01
USA announces 25 pct tariff on Chinese goods

The tariffs and investment restrictions, as well as a case brought by the United States against China before the World Trade Organization, are the effect of an investigation the U.S. launched a year ago into intellectual property practices in China.

The U.S. also wants its representatives to make site visits to check ZTE's claims about components without coordinating with Chinese government officials, as required by a non-public agreement between the countries, sources said. "So, I think the US used to have a lot of leverage, now the USA doesn't have a lot of leverage". But they won't join in if they think the United States is going to suddenly shift gears and just focus on reducing the trade deficit, he said. Ross declined to speak to reporters when he arrived at his hotel in Beijing.

To let ZTE off the hook now is to undercut the power of sanctions and put the United States in a weaker position when it presses for trade concessions and support in isolating rogue regimes.

The U.S. team also wants to secure greater intellectual property protection and an end to Chinese subsidies that have contributed to overproduction of steel and aluminum.

"We have always believed that China and the U.S. have extensive common interests and broad space for cooperation in the economic and trade field". "There's an acknowledgement on both sides to deal with this issue".

China's government accused the Trump administration of hurting its credibility by acting erratically on trade and vowed Wednesday to fight back if Washington goes ahead with a threatened tariff hike.

President Donald Trump's hard-line views on trade, a staple of his message long before he entered politics, are beginning to collide with the cold realities of global geopolitics.

Meanwhile, the Department of Commerce announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of certain plastic decorative ribbon from China, finding that exporters in China received countervailable subsidies ranging from 12.81 per cent to 94.67 per cent.

Mr Christopher Rogers, a trade analyst at Panjiva, an worldwide commerce data firm recently acquired by S&P Global Market Intelligence, estimated that the tariff cuts would cover about 1.1 per cent of China's US$1.95 trillion in annual imports. "That is not Free or Fair Trade, it is Stupid Trade!" Argentina, Australia, Brazil and South Korea all came to the negotiating table, while European Union officials said they would not negotiate trade issues "at gunpoint".

Trade war fears had receded after the Trump administration said it had reached a deal to put ZTE Corp back in business after banning China's second-biggest telecoms equipment maker from buying U.S. technology parts for seven years.

On Friday, China's markets regulator said it was still reviewing San Diego-based Qualcomm Inc's $44 billion acquisition of NXP Semiconductors.

The Trump administration may soon claim as much as US$1.7 billion penalty from ZTE Corp, as it looks to punish and tighten control over the Chinese telecommunications company before allowing it back into business, according to people familiar with the matter. "But we see no sign of that in this action today by the USA administration".

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