The ongoing trade wars between the US and China are expected to escalate further as China, on Wednesday, hinted at pressing further with imposition of tariffs and trade restrictions on US products and companies. The unexpected statement was issued by the Beijing administration terming its move as a warning for the US not to initiate further trade wars with the Asian giant.
The warning comes barely hours after the US side issued a threat on Tuesday that it would impose tariffs on imports worth $50 billion from China. The US said it was particularly concerned by the high levels of theft on intellectual property rights emanating from China. Although Chinese officials did not respond immediately to the American concerns relating to the issue of counterfeiting and intellectual rights, they were quick to add that the US’s move would only make matters worse.
The recent developments follow the fruitful month-long negotiations between the two nations which resulted in a joint commitment to work towards reducing as much as possible the $375 billion trade surplus that puts the US on the receiving end. Earlier on, the US president had been a vocal critique of the manner in which the two nations conducted trade, particularly given the fact that the US has been losing much.
The ongoing negotiations are expected to continue even as the US Secretary of Commerce, Wilbur Ross will be set to visit China to meet his counterpart in the coming days where the issue would be expected to be prioritized.
Elsewhere, the US officials are now revealing the country’s earlier set of tariffs have been somehow productive as far as exerting pressure to Chinese products is concerned. According to American Chamber of Commerce chairman, Willam Zarit, it was exposed that imposing of tariffs was not the best way to handle the otherwise sensitive issue. He, however, added that the Chinese counterparts were presenting a situation where they were not willing to freely negotiate unless under due pressure. The tariffs were, therefore, a point of leverage for the US against China.
The local press in China was highly responded to the recent tariff wars by rallying its support behind the Chinese government that it was willing to play along with the US-initiated tariff games.
It emerged later on Tuesday that the negotiations involving the reduction of trade surplus between the two nations were a separate issue that the US was engaging China on. The issue of intellectual property rights is set to be on the agenda as the Secretary of Commerce is set to visit China in early June.