China urges USA to 'pull back from brink' as Trump unveils tariffs
China urges USA to 'pull back from brink' as Trump unveils tariffs
25 March, 2018, 01:39
The American pork industry sent $1.1 billion in products, making China the No. 3 market for USA pork.
On March 23, the US President imposed massive trade tariffs amounting to United States dollars 60 billion on China, in an effort to stop the latter from stealing "intellectual property" from American companies.
"Beijing is extending an olive branch and urging the U.S.to resolve trade disputes through dialogue rather than tariffs", said economist Vishnu Varathan of Mizuho Bank in a report. "We are buying more rapeseed meal, for example", said one of the sources.
As Beijing and Washington exchange barbs that threaten a potential trade war, health-conscious Chinese shoppers are beginning to fret over what this could mean for their pockets: a potential jump in prices for USA -grown cherries and pistachios. The Trump administration says it wants to impose the tariffs in response to China's "economic aggression". The WTO allows a country to set up tariffs for that reason, but it is something of a taboo among countries to do so because if one country invokes national security, it increases the chance that others might as well.
China's response Friday appeared to be aimed at increasing domestic US pressure on Trump by making clear which exporters, including farm areas that voted for him in 2016, might be hurt.
Chinese citizens took to social media to register their backing for a resolute response to Mr Trump's package of tariffs. Once the World Trade Organization began moderating global trade in 1995, use of Section 301 virtually disappeared.
Chen contended, however, that even if the United States and China reach a compromise on the tariff plan, endless trade disputes could occur in the future, and the US would still have to appeal to the WTO and go through the WTO's dispute and settlement mechanism before it could retaliate.
By including the WTO in its framework, the Trump administration is still working through established channels.
Noting that consultations are the first step in the WTO dispute settlement process, the USTR said if the U.S. and China are not able to reach a mutually agreed solution through consultations, the Trump Administration may request the establishment of a WTO dispute settlement panel to review the matter.
Late Thursday, China issued a response through its US embassy: "China does not want a trade war with anyone", the statement said.
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In contrast, Mr Trump tweeted earlier this month that "trade wars are good, and easy to win" - a view nearly no one else holds. That would be a huge blow to US farmers, as American exports to the Asian country are worth about $14 billion annually.
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