US-China TRADE WAR: Tensions BOIL OVER as Beijing accused of BACKTRACKING on deal

The two sides have been locked in a bruising tariff dispute for months, with hopes of a resolution being pushed further away after US President Donald Trump vowed to impose new sanctions. A furious President Trump announced on Sunday he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent by the end of the week. The US leader added he would “soon” target remaining Chinese imports with tariffs. His tweets abruptly ended a five-month ceasefire in a trade dispute that has cost the two countries billions of dollars and disrupted manufacturing supply chains.

The threat of higher tariffs came after US Trade Representative Robert Lighthizer claimed China had reneged on previous commitments to end the trade war.

Mr Lighthizer told reporters: “Over the course of the last week or so we have seen an erosion in commitments by China.

“That, in our view, is unacceptable. We’re not breaking off talks at this point.

“But for now come Friday there will be tariffs in place.”

Treasury Secretary Steven Mnuchin said the backtracking by China became clear with “new information” over the weekend.

He declined to give specifics and said the US side had originally hoped to conclude a deal either way this week.

Mr Mnuchin said: ”They were trying to go back on language that had been previously negotiated, very clear language, that had the potential of changing the deal dramatically.

“The entire economic team are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week.”

China has repeatedly said it will make changes to open its economy on its own timeline, not in response to trade disputes.

Beijing has recently adopted new laws, including a Foreign Investment Law, and amended others, in moves some see as efforts to tackle concerns of the US and other foreign investors.

The United States now has 25 percent tariffs on $50billion of Chinese machinery and technology goods, and 10 percent tariffs on $200billion of products ranging from computer modems and routers to furniture, lighting and building materials.

It was announced today Chinese Vice Premier Liu He will still visit the US this week for trade talks, despite the recent accusations from the US officials.

China’s Commerce Ministry confirmed that Liu, who leads the talks for Beijing, will visit the US on Thursday and Friday.

It is not clear what topics will be discussed during the trip.

Foreign Ministry spokesman Geng Shuang told a news briefing that mutual respect was the basis for reaching a trade agreement.

Mr Shuang said: ”Adding tariffs can’t resolve any problem.

“Talks are by their nature a process of discussion. It’s normal for both sides to have differences.

“China won’t shun problems and is sincere about continuing talks.

“We hope the US side can work hard with China, to meet each other halfway, and on the basis of mutual respect and equality, resolve each other’s reasonable concerns, and strive for a mutually beneficial, win-win agreement.”

source: express.co.uk