China reciprocates with new tariffs on USA products worth $50B

China raised import duties on US pork fruit and other products Monday in an escalating tariff dispute with President Donald Trump that compani

China has never given in to external pressure, Vice Finance Minister Zhu Guangyao said on Wednesday, shortly after Beijing unveiled a list of USA goods it will target in response to planned US tariffs.

The Chinese list Wednesday included soybeans, the biggest US export to China, and aircraft up to 45 tons in weight.

There will be a 60-day delay before the United States tariffs take effect, while China said its timetable for the proposed new tariffs would depend on when the USA acted.

Trump has argued that the Chinese government forces USA companies to surrender proprietary technology to gain access to the Chinese market, resulting in the theft of trade secrets.

The scale of China's tariff targets was in line with Beijing's pledge to mount a commensurate response, but it was released sooner than many observers had expected, adding to market fears that the world's two largest economies are spiralling toward a trade war that could shake the global economy.

Known as the Made in China 2025 program, the plan specifies efforts to build up cutting-edge industries like robotics, aerospace and electric cars. Foreign companies complain that will limit or outright block their access to those industries. The new tariffs announced on Wednesday will amount to 25 percent on the American products.

He added that some US punitive action against Beijing has been "coming for a while" over what the United States calls China's predatory behaviour involving technology.

The Chinese measures announced Monday raised tariffs on pork, aluminum scrap and some other products by 25 percent. Farm states generally backed Trump in the 2016 election and their exports could be hurt.

Zhu, the deputy finance minister, expressed thanks to American soybean farmers who he said had lobbied the Trump administration to "safeguard hard-won economic relations between the United States and China". But both sides are showing off their weapons.

China's vice commerce minister on Wednesday refuted claims that China was the one that started the "trade war" by forcing foreign firms to share technology, calling it "fake news" and "groundless". A report in state-controlled media on Wednesday described the development of advanced manufacturing as "an inherent requirement for the transformation and upgrading of China's manufacturing industry, and it is also the only way for China's economy to enter a high-quality development stage".

China, on Wednesday, said it would levy 25% reciprocal tariff on 106 USA products, including soybeans, cars, whiskey, and chemicals.

In compiling the list, US officials used algorithms to identify products that benefited from China's state-directed campaign of technology acquisition while eliminating those whose inclusion would disrupt the USA economy. But Beijing wants to capture more of the profits by becoming a creator of technology instead of a low-priced factory.

Washington is trying to promote technology exports to offset its imports from China and support higher-paying jobs.

After a months-long investigation, the USTR concluded that China forces U.S. tech companies that want to operate there to enter joint ventures with Chinese businesses and share their technology.

"There is no victor in a trade war, and an initiator will harm itself as well as others", Geng said, noting China had referred the latest U.S. action to the World Trade Organization.

The Chinese say the issue needs to be resolved through dialogue.

"It serves neither China's interest, nor USA interest, even less the interest of the global economy", it continued, adding, "As the Chinese saying goes, it is only polite to reciprocate". Regulators have wide discretion to withhold licenses or take other action to disrupt logistics and other service businesses.

Europe and Japan also have grumbled about the monopolies and other privileges given to SOEs.



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