MNI POLICY: China Calls US Untrustworthy, Vows Fight to Finish

     BEIJING (MNI) - China on Sunday tried to shift the blame onto the U.S. for

the stalled trade talks after enacting retaliatory tariffs, signalling a

hardened stance and preparedness for a protracted conflict. 

     In a so-called white paper outlining its positions on the trade

negotiations, China said that an agreement can only be reached when the U.S.

removes all punitive tariffs imposed and it will make no concessions on matters

of principle and "take on the fight to the finish," while still keeping the door

open for negotiations.

     "The U.S. violated the consensus, walked back on promises during the

economic and trade talks; it fails to be trustworthy," China said in the white

paper.

     Charges by the U.S. that China backpaddled on its position are

irresponsible and "pouring dirty water," as "nothing is agreed until everything

is agreed," Vice Minister of Commerce Wang Shouwen said at a press conference.

     The white paper came a day after China enacted tit-for-tat tariff hikes on

American goods.

     Other key points made by Wang, who is China's deputy trade representative:

     -- The U.S. pressured to include terms challenging China's sovereignty into

the agreement, refused to remove all the punitive tariffs since the trade

conflict began. If one side doesn't respect the other's sovereignty and core

interests, such negotiations won't succeed. 

     -- No information on whether Chinese President Xi Jinping will meet Donald

Trump at the G20 summit in Tokyo this month.

     -- The so-called "non-reliable entity negative list" targets companies that

damaged the legitimate rights of Chinese firms through supply cut or blockade

out of non-commercial purposes, or threatened the national security and public

interests of the country. The list will be announced soon.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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