China vows to take countermeasures against US tariffs

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China will certainly take countermeasures against the products originating from the US in the same scale, same degree and same intensity to the US measures, said a spokesperson of Chinese Ministry of Commerce Wednesday after the US released a proposed list of products imported from China that could face more tariffs.

Chinese Ministry of Commerce in Beijing /VCG Photo

The Office of US Trade Representative (USTR) on Tuesday published a proposed list of Chinese goods subject to additional 25 percent tariffs under Section 301 investigation amid strong opposition from China and US business groups.

The proposed list covers approximately 1,300 products from industries such as aerospace, information and communication technology, robotics and machinery, with an annual trade value of approximately 50 billion US dollars.

"As the Chinese saying goes, it is only polite to reciprocate. The Chinese side will resort to the WTO dispute settlement mechanism and take corresponding measures of equal scale and strength against US products in accordance with Chinese law."

'Typical unilateralist and protectionist action'

The United States tariff proposals are "typical unilateralist and protectionist action" that China strongly condemns and firmly opposes, said Chinese Foreign Ministry spokesperson Lu Kang on Wednesday, adding that China is ready to take any necessary measures to defend its legitimate interests, while hoping to properly handle the trade dispute with the United States through dialogue and consultation.

‘’We keep reiterating that China won't initiate a trade war, and a trade war is the last thing we want. However, we will not be afraid of it. If someone is bent on waging it and even closing in on our doorstep, then we will keep them company and let's see who last to the end…They may have their list, but we also have our own,’’ said Chinese Foreign Ministry spokesperson Geng Shuang on Tuesday.

Chinese Foreign Ministry spokesperson Geng Shuang /MOFA Photo

China hopes the US side would remain level-headed, get a clear grasp of the situation, listen to its business community and ordinary people, and renounce its unilateralism and trade protectionism sooner rather than later, Geng pointed out.

The Customs Tariff Commission of the State Council suspended tariff concessions on some US imports on April 1. This measure is a response to the US Section 232 measures which increase tariffs on steel and aluminum imports and aims to offset losses incurred by it.

“It is a response to the Section 232 measures, not to the Section 301 investigation,” Geng added.

US should 'refrain from going down the wrong path'

“We hope that the US side, with sense and long-term picture in mind, would refrain from going further down the wrong path,” said a statement released by Chinese embassy in the US, pledging China would take corresponding measures against the US.

"Such unilateralist and protectionist action has gravely violated fundamental principles and values of the WTO. It serves neither China’s interest, nor US interest, even less the interest of the global economy."

WTO members should 'lock arms with China'

"The unilateral action by the US has gravely undermined the foundations of the WTO, putting WTO in an unprecedented danger. We urgently call upon the entire WTO membership to lock arms with China in fighting against the US blatant protectionist acts," said Zhang Xiangchen, Chinese ambassador to the WTO, on Tuesday.

The announcement of unilateral measures by the US against China under its domestic Section 301 investigation is an intentional and gross violation of the WTO’s fundamental principles of non-discrimination and bound tariffs.

In the history of multilateral trading system, Section 301 was wildly abused at times by the US to coerce other members for its own industrial interests, and such unilateral actions were strongly opposed by other countries.

In early 2000, the WTO finally adopted a clear ruling on Section 301 in DS152, a dispute lodged by the EU.

Since then the provision has been shelved for nearly two decades.

While the “explicitly, officially, repeatedly and unconditionally confirmed” commitments undertaken by the US in that dispute are still unambiguously written in the WTO rulings, the US has now "turned its back on such commitment and blatantly taken the unilateral measures against China."

"In accordance with the Foreign Trade Law of China, China will take countermeasures against the products originating from the US equivalent in scale and degree to the US measures. Our actions are taken in direct response to the emergency situation caused by the US, and are necessary actions of justice served to fight against the US pervasive protectionism," noted Zhang.