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Free AccessMNI INTERVIEW: No Trade Letup Despite ZTE Move: Ex-US Official
By Iris Ouyang
BEIJING (MNI) - Washington's recent decision to temporarily lift a ban on
Chinese tech giant ZTE should not be seen as a sign that the U.S. will back down
from its plans to impose tariffs on $34 bln worth of Chinese goods from July 6,
a former U.S. trade official told MNI in an interview.
The U.S. move on ZTE "doesn't mean it solves the problems of tariffs and of
the 301 investigation," Timothy Stratford, former Assistant U.S. Trade
Representative for China Affairs at the Office of the U.S. Trade Representative
(USTR), said on Wednesday. "There are some areas in which the two governments
can cooperate, even if they haven't solved the problems in other areas," he
noted.
On Tuesday, the U.S. Department of Commerce announced that it will allow
ZTE to temporarily resume conducting business with American tech companies over
the period July 2 - August 1. In April, the U.S. government barred American
companies from selling components and services to ZTE for seven years, in
response to ZTE's alleged violation of trade bans with Iran and North Korea.
Stratford's view was echoed by a trade advisor to the Chinese government,
who told MNI that the ZTE issue is unrelated to the broader trade dispute
between the world's two largest economies.
--CHINA RETALIATION
Adding that the U.S. is "very likely" to press ahead with imposing the new
tariffs on July 6, Stratford also told MNI that China is expected to retaliate
on an equivalent basis. The Chinese government has stated that it will take
immediate retaliatory measures against the imposition of U.S. tariffs. Following
such developments, a full-blown trade war would take more than a year to end, he
said.
Stratford pointed out that Chinese officials could also take a number of
other retaliatory measures in addition, such as delaying approvals for
investment by U.S. companies in China -- something which is already being
experienced by some American firms, he added. These concerns come despite
Chinese President Xi Jinping's statement that China will not use American
companies as a bargaining chip in trade negotiations with the U.S.
"We are entering into a dark tunnel," Stratford said, "but we are too busy
figuring out how to hurt each other, instead of trying to figure out what the
light at the end of the tunnel looks like -- and how we can find a way to that
light."
He noted that people from both countries, including some officials, are not
making sufficient efforts to fully understand and examine the real problems --
i.e. fundamental differences between the U.S. and Chinese economies which have
led to different trade practices.
Stratford stated that the two countries should hold objective discussions
to address "unfair advantages" on both sides, instead of simply accusing each
other of wrongdoing.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MX$$$$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.