MNI POLICY: China Vows to Fight US Tariffs, Denies Reneging

By Iris Ouyang

     BEIJING (MNI) - China's Ministry of Commerce on Thursday said the country

will have no option but to fight back if the Donald Trump Administration goes

ahead with plans to increase tariffs on Chinese exports this Friday. Here are

some of the highlights from the ministry's weekly briefing:

     - China is not reneging on its earlier commitments as the U.S. claims. The

U.S. has falsely laid the promises on China, spokesman Gao Feng told reporters.

     -China will have to implement necessary retaliatory measures if the U.S.

increased tariffs to 25% from the current 10% on $200 billion Chinese goods,

even as doing so hurts interests of both sides. China is well prepared to face

all possible outcomes of the bilateral trade talks, and can defend its legal

rights, the ministry said.

     -The U.S. has giving China many "labels", including backpedaling on

promises it didn't make, Gao said. China hasn't tried to overturn previous

discussions on a possible deal. "China values its trustworthiness and keeps its

promises, and that has never changed," Gao said, adding having different

opinions on two sides of the negotiating table is normal.

     - China's stance and attitude on trade talks with the U.S. are consistent

and clear. China is against unilaterally slapping tariffs and it hopes the U.S.

can work with China towards the same direction, using talks not unilateral

measures to tackle the problems, Gao said.

     - Chinese Vice Premier Liu He leading the delegation to the U.S. this week

"to the largest extent shows China's sincerity and goodwill to advance

negotiations," but won't concede to any pressure, Gao said in response to a

question why Chinese officials go to the U.S. for talks even with "a gun pointed

to their heads." 

     -The MOFCOM expressed China's willingness to advance negotiations, claiming

"substantial sincerity" along the process. "We hope both sides work together to

the same direction, on the basis of mutual respect, through cooperation and

negotiations to solve the existing problems" with rational and practical

attitudes, Gao stressed.

     -Gao refused to answer questions regarding current disagreements of the two

countries, but said China is seeking for a win-win deal and both nations have

exchanged in-depth ideas about topics that concern them in last week's trade

talks in Beijing, "both sides agreed to continue to maintain close

communication."

     -Gao denied U.S. accusations that the government helps Chinese companies

steal technology, intellectual property and related industrial knowledge from

American companies. "The Chinese government encourages and respects domestic and

foreign companies to conduct technical exchanges and communication based on

market principles, we have never forced tech transfer," he said, adding the new

foreign investment law forbids such practices.

     -China's economic and trade cooperation with Iran is reasonable and legal,

and has to be respected and protected, Gao said in response to a question on

whether China will stop importing crude oil from Iran. "China is firmly against

the U.S. conducting unilateral sanctions and so-called long-arm jurisdiction,"

Gao repeated a comment by the Ministry of Foreign Affairs, adding China is

committed to defending the rights of Chinese companies.

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

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

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$]