Published: Thu, May 31, 2018
World Media | By Cesar Oliver

White House trade adviser says China trade dispute was never 'on hold'

White House trade adviser says China trade dispute was never 'on hold'

President Donald Trump is moving ahead with steps to protect USA intellectual property by punishing China with broad investment restrictions, litigation at the World Trade Organization and hefty tariffs on $50 billion worth of Chinese goods.

"The administration also said new restrictions on Chinese investment and enhanced export controls will be announced by June 30 and then implemented shortly after". The White House said a list of products would be announced June 15.

The Trump administration has renewed its threat to place 25 percent tariffs on $50 billion of Chinese goods in retaliation for what it says are China's unfair trade practices. But this latest flip-flop could damage the credibility of the US and President Trump.

The change would come as the administration of President Donald Trump attempts to crack down on what it says is theft of U.S. intellectual property by China.

No matter what measures the United States takes, China has confidence, ability, and experience to safeguard the interests of the Chinese people and the country's core interests. In retaliation, China threatened to impose a 25 percent tariff on United States dollars 50 billion worth of USA exports.

The US government has threatened to impose tariffs on $50bn of imports from China unless Beijing addresses the issue of the theft of American intellectual property, once again raising the prospect of a trade war.

"If the U.S. insists on acting arbitrarily and recklessly, China will take firm and powerful measures to safeguard its own legitimate rights", Hua said.

The decision comes as Commerce Secretary Wilbur Ross is scheduled to be in China early next month for talks to reduce the tensions over trade between the two countries.

But on Tuesday evening it said that sanctions announced in March - largely focused on China's theft of U.S. intellectual property - were still in the works and details would be announced in the coming month. "It is obviously against the consensus reached by the U.S. and China in Washington recently".

Lastly, the White House said it will continue to pursue litigation at the World Trade Organization (WTO) against China. In particular, China's favoring of its own companies over foreign firms and its handling of intellectual property rights, or lack there of, with companies that do business on the mainland. China had promised to retaliate in a move that threatened a tit for tat trade war.

Either way, repeated changes to the USA strategy on China may only bog down talks with Beijing moving forward, Reinsch said.

Several U.S. officials arrived in Beijing on Wednesday for talks, according to a U.S. embassy spokeswoman, including Under Secretary of Agriculture Ted McKinney; the U.S. Trade Representative's chief agricultural negotiator, Gregg Doud; and Commerce Department Deputy Assistant Secretary Alan Turley. The fine would be on top of a $1 billion penalty ZTE has already paid for selling high-tech equipment to North Korea and Iran in violation of US sanctions.

The White House statement said: "Discussions with China will continue on these topics, and the United States looks forward to resolving long-standing structural issues and expanding our exports by eliminating China's severe import restrictions".

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