US, China Privately Work to Mend Trade Disagreement
Mar 27 2018
Liu told Chu that Beijing hoped both sides of the Taiwan Strait could work together for the peaceful development of relations and "jointly promote the process of the peaceful reunification of the motherland". The Dow Jones industrial average fell by about 724 points, or almost 3%, after the tariffs were announced on Thursday, then they dropped an additional 425 points on Friday.
Chinese Premier Li Keqiang earlier on Monday said that China and the United States should maintain negotiations and repeated pledges to ease access for American businesses to China's markets.
He also said China would push forward property tax legislation and implementation, while further improving the transparency and efficiency of fiscal budget management. "These are all the things we want to do".
"When they charge 25 percent for a vehicle to go in, and we charge 2 percent for their auto to come into the U.S., that's not good", the president said.
Signs of potential compromises were also supported by news overnight that South Korea would be exempt from USA steel tariffs in a revision of the bilateral trade pact between the two countries.
The country purchased $2.6 billion of semiconductors from the US last year, or 1 percent of China's total semiconductor imports, Chinese customs data shows.
The U.S. representative also noted that on Friday the United States had filed a complaint at the WTO, accusing China of allowing patent theft and using licensing requirements to discriminate against foreign technology holders.
President Donald Trump's White House has "legitimate" concerns underlying its controversial actions against China and the World Trade Organization, according to a former trade official. A negative reaction came nearly immediately from China, with threats of targeting 128 USA products with a value of $3 billion, if the tariffs are imposed.
China has yet to say how it might respond to Trump's approval Thursday of possible higher duties on $60 billion of Chinese goods in response to complaints Beijing of stealing or improperly pressuring foreign companies to hand over technology. We shouldn't stay put watching someone wrecking the boat.
It will also "give equal protection to property rights of all ownership types by law", and strengthen protection of intellectual property rights, said He, adding that China would better integrate its financial sector and real economy.
Donald Trump's plans to impose $60bn worth of tariffs on China - on top of wider sanctions on steel and aluminium - raised fears of a trade war between the world's two largest economies and sent shivers through global stock markets. His recently announced (and later scaled back) steel tariffs, for example, will punish vehicle makers and other industrial users of steel.
China's imports of US-built motor vehicles totalled US$10.6 billion in 2017, about 8 percent of the country's overall USA imports by value, according to USA government data.