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Home / World / Trump increases pressure on China with Sverve on tariff plans

Trump increases pressure on China with Sverve on tariff plans

President Donald Trump said he is making progress in imposing tariffs on $ 50 billion of Chinese imports and slowing down investment in sensitive technology, which would exacerbate pressure on the days in Beijing before the next round of trade negotiations

On Tuesday, the White House announced that a final list of targeted imports will be released by 15 June and customs duties will be "shortly thereafter" , It is most specific when the Zeste came into force [19659003] The government also said that new restrictions on Chinese investment and increased export controls would be announced by June 30 and then implemented shortly thereafter. China's Ministry of Commerce responded hours later with a statement (1

9659005), saying it was surprised by the US announcement, and that he was confident the country could protect his interests.

Timeline of the Repeated US-China Trade Conflict [19659003] It is the recent turn in a trade dispute between the US and China that has rocked the financial markets for months, prompting the International Monetary Fund to warn against a trade war that is the largest global upswing for years could undermine. The announcement increases the stake for the third round of talks between the two economies. Trade Minister Wilbur Ross is scheduled to meet officials in Beijing on 2 and 3 June to continue negotiations.

The decision to proceed with tariffs could halt these planned talks, the Wall Street Journal reported on Wednesday in both countries. A team of US officials should arrive in Beijing on Wednesday to discuss the main features of these talks, but if the two sides could not agree on what would be discussed, Ross & # 39; trip could be canceled, it said Report] Asian stocks slid on Wednesday as concerns over the effects of political turmoil in Italy and the renewal of trade tensions between the US and China hit financial markets. The yen extended its gains as Treasury yields seemed to stabilize following a slump on Tuesday.

While trade disputes remain a risk to China's economic forecasts, countries are likely to find common ground, said Robin Xing, senior China economist at Morgan Stanley. He sees the nation buying another $ 60 billion in American goods over several years

"The two parties can reach a deal through China's rising imports," he said Wednesday in a Bloomberg Television interview from Beijing. "De-escalation over time through negotiations remains our case because we see areas where China and the US can find a middle ground to make mutually beneficial progress, for example, to meet China's own demand for improved consumption."

Trump has In recent weeks, the question of how difficult it is to urge Beijing on issues such as tariffs and intellectual property. The dispute began in March, when his government threatened to impose tariffs of up to $ 50 billion on Chinese supplies to punish Beijing for violating US IP.

Chinese state media responded with dismay to the recent turnaround, although the promise of retaliation was muted.

"The world is facing an extremely rigorous White House administration," states a Global Times editorial. "The Chinese government has the ability and wisdom to cope with such situations."

What Our Economists Say:

"Given the many changes in US trade in recent weeks, we suspect that the Chinese negotiators and the markets have begun to mitigate the noise and focus on the substance." wrote Tom Orlik, Bloomberg's chief economist in Beijing, in a report. Even if this were the case, bilateral tariffs would not affect China's growth, according to our analysis. "

The trade gap under control

Trump often leads America's" massive "trade deficit with China as a problem

Source: US Department of Commerce

After Beijing pledged to repay all sorts of duties, the president raised the pretext of raising tariffs to an additional $ 100 billion in Chinese goods. However, the US still needs to publish a list of target products for the $ 100 billion, and Tuesday's White House statement has not made reference to the second possible tranche of tariffs.

The threat of US tariffs has been widely rejected by industry leaders, and some members of the congress who warn of obligations may end up raising costs for American consumers, destroying farmers and harming other exporters if China continues with retaliatory levies.

"Contradictory news from the government is causing whiplash for American companies about expanding the economy and creating jobs here at home," states an emailed statement by the Virginia-based Association of Retailers. "We support the government's decision to blame China for its bad behavior, but retailers strongly believe that instigating a global trade war will lead to losses."

Congressional Pressure

U.S. Chamber of Commerce President Thomas Donohue said via e-mail: "We continue to believe that the use of tariffs will weigh on the American economy and consumers."

Trump is also under pressure from Congress to fight China hard Especially the Chinese telecommunications supplier ZTE Corp. Last week, the president said he wanted ZTE to stay in business after paying a $ 1.3 billion fine, shaking his management and granting "high security guarantees."

China urged the US to give ZTE a break after the Commerce Department cut off the company from US suppliers to allegedly lie in a lawsuit against US officials. Republican Senator Marco Rubio and other legislators of both parties have Trump criticizes leniency towards ZTE, arguing that doing business with the company poses a risk to national security.

Top Senate Democrat Chuck Schumer, who has so far vowed Trump's tariff plan, ur sees the president as "strong, tough, and consistent" in addressing China's trade policy.

"Stay tuned"

The White House's directive to introduce tariffs announced on Tuesday "represents the kind of action we need for a long time," Schumer said in an e-mail message. "But the president has to stick to it and not bargain it away."

When Trump announced the original plan to impose tariffs, he ordered the Ministry of Finance to impose new restrictions on US investment by Chinese companies. The Ministry of Finance has presented its findings to the President, but its conclusions have not been published.

The White House's latest signal sounds as though the more aggressive wing of Trump's trading team is trying to strengthen its hard line after the Treasury Secretary Secretary Steven Mnuchin said this month that any talk of a trade war was temporarily suspended.

"Mnuchin's comments on the war on hold appear to have been rejected this morning, and possibly his investment policy," said Derek Scissors, a China analyst at the American Enterprise Institute in Washington. "It may be that the administration has postponed anything to appease Congress about lifting the ZTE sanctions."

WTO case

The White House said on Tuesday also that the US plans to continue disputes in the World Trade Organization of China have intellectual property practices

In another indication that the Trump government before This week, the White House issued a separate statement that went through its biggest complaints about China's commercial practices of forced technology transfers to automobile imports

– With support from Mark Niquette, Tom Mackenzie, Jeff Kearns and James Mayger

( Updates on the inclusion of the WSJ report on the preparations for negotiations. ) [19659042]
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