China Warns It Is "Seriously Concerned" About US Trade-Policy Agenda

Ahead of Trump's steel and aluminum tariff announcement, now tentatively expected to take place around 11am, China said it was "seriously concerned" over U.S. criticism of China’s economic growth model and related policies in its annual report on trade-policy agenda, China Ministry of Commerce said in statement on website.

The U.S. trade-policy report is ignorant of China’s "huge" accomplishments in building market-based economy and the fact that China sticks to commitments to WTO.

According to Beijing China and the U.S. should manage and control differences in constructive ways while avoiding politicizing economic, trade issues. The two nations should also improve communications and open markets to each other, and solve key concerns of both sides appropriately.

As a reminder, yesterday President Trump warned that the U.S. will use “all available tools” to prevent China’s state-driven economic model from undermining global competition, in his latest warning to Beijing as America readies a host of trade actions.

According to the president’s annual report to Congress on his trade-policy agenda, China hasn’t lived up to the promises of economic reforms it made when it joined the World Trade Organization in 2001, and actually appears to be moving further away from “market principles” in recent years. The report also accused that China’s “statist” policies are causing a “dramatic misallocation” of global resources that is leaving all countries poorer than they should be.

And the most direct threat was the following line in the report: "China is free to pursue whatever trade policy it prefers. But the United States, as a sovereign nation, is free to respond."

As reported earlier, and as Bloomberg adds, Trump’s warning comes as his administration considers a range of actions either directly aimed at China, or that could impact the Asian power.

The president is weighing several options for curbing imports of steel and aluminum, and Trump has told confidants he’s considering a global tariff on steel of 24 percent, the most punitive alternative recommended by his officials. The administration is ready to act unilaterally if necessary to fight unfair trading practices, according to trade report.

Meanwhile, Xi has called for countries to avoid protectionism and stick to the current path of globalization. At the same time, Chinese officials are weighing raising tariffs on U.S. soybeans as tensions escalate.

There will likely be discussions over such trade irritants when Liu, who sits on China’s 25-member Politburo, meets with a group of Trump’s most senior economic advisers on Thursday, including Gary Cohn, Treasury Secretary Steven Mnuchin and Lighthizer. He’s also expected to talk with Susan Thornton, the State Department’s acting assistant secretary for East Asia and the Pacific.

For now, however, one thing is without doubt: China is winning the trade battle with the US.

It still remains to be seen if US-Chinese relations turn into an all out trade war as Trump tries to change the direction of the trend shown above. 




popeye Stuck on Zero Thu, 03/01/2018 - 17:20 Permalink

Is Trump saying USA does not subsidise Boeing, Tesla, Lockheed Martin, Halliburton, ExxonMobil, Raytheon, General Dynamics, et al? Really? The USA is not statist? Seems to me that is the subject of many complaints on ZH - the dominance of the Federal govt in US society.

Why is the US military budget $700B if not to subsidise US corporates?

I am so fed up with the hypocrisy. This is just one example - there are so many, EVERY DAY.


In reply to by Stuck on Zero

lester1 Thu, 03/01/2018 - 09:50 Permalink

Fuck you China! Your country would collapse without access to US markets!


How about you drop your tariffs first China?? Open up your country to US products!!

Consuelo Buckaroo Banzai Thu, 03/01/2018 - 13:00 Permalink

I'm readying a little batch of Cisco ASA 5510 VPN's for a customer today in fact - and whaddya know?   The damned pieces of crap are made in...

The entire hardware infrastructure that enables you & me to walk & chew gum at the same time here, is made in China...   

And that 'enabling' as it were, didn't happen overnight.   Neither will Trump's attempt at re-manufacturing the U.S. be.

In reply to by Buckaroo Banzai

NumNutt D.T.Barnum Thu, 03/01/2018 - 10:52 Permalink

"And our country would collapse without access to Cheap Chinese goods."  There fixed it for you. What everyone needs to remember is that what ever product it is, from Steel to toaster ovens, the Chinese can manufacture and ship it half way around the world and still make a profit. Why is that? Trump understands the reasons, and that is why he is removing US regulations on manufacturing, and increasing the cost of those cheap Chinese products, it is a two pronged approach.  There will be a down side for a period of time while US businesses step in to pick up the slack left by Chinese products, but ultimately if the market is left alone (and free) it will work out. 

In reply to by D.T.Barnum

CatInTheHat lester1 Thu, 03/01/2018 - 11:49 Permalink

And they could stop buying our debt too. In that event our economy would collapse.

Because dipshit Clinton sailed manufacturing overseas, we now rely upon CHINA for nearly everything. And slapping tariffs on China is a huge mistake. Ain't no manufacturing coming back here as a result either. 

The goal of the elite is not to make our lives better or grow our economy. The criminals are in the dying gasps of empire. This will not end well for us 



In reply to by lester1

MrBoompi Thu, 03/01/2018 - 10:53 Permalink

America is much better at attacking unarmed civilians in countries that can't defend themselves.  And don't worry, Putin promised Hillary none of our uranium will end up in Russia's new hypersonic weapons.  

Rex Andrus Thu, 03/01/2018 - 11:01 Permalink

Yes chicom uniparty apparatchiks, we too are very concerned about subsidizing your economic progress, mind you at great economic hardship to our own poor and disadvantaged, whilst you perpetrate operation Moonbeam and flood our nation with illegal aliens, meth and fentanyl. The British crown and their (((pirates))) may deserve this for their past transgressions against you, but we do not. Stuff it, you ungrateful beggars. If only the Chinese people knew about you what we do, and I assure you that can be arranged, you know they will revolt immediately. We are going to hang all your American accomplices.

HenryHall Thu, 03/01/2018 - 11:08 Permalink

Russia actually increased its net holdings of US Treasuries over the last several months. Not sure about the Chinese.

The Russians are not stupid, so what the heck is going on??!

Something is going on because doing that makes little to no sense on the surface. :-(

truthalwayswinsout Thu, 03/01/2018 - 12:14 Permalink

You have nothing to lose when you start a trade war and you have a $700 Billion trade deficit. In fact, you have everything to gain.

No matter what happens you win. It is the same at the bank. When you owe the bank $50K it is your problem, when you owe the bank $50 Million it is theirs.

China will lose so big in a trade war the Communist party may not survive.


Let it Go Thu, 03/01/2018 - 19:57 Permalink

Trade policy has massive long-term ramifications on the strength of a nation's economy. Often people fail to note the difference between free and fair trade. In many ways, the global economy has become an ill-regulated business model tilted to favor big business and giant conglomerates. We should not lose sight of the fact that while free trade is important, fair trade is far more so and should be the main issue.

http://Free Trade And Fair Trade Are Very Different.html