China issues trade war warning to US

Lazy eyes listen


China has expressed “serious concerns” over US tariffs on its semiconductor industry and wider tech sector, warning that such measures violate the principles of fair competition and jeopardize global trade stability.

Following a session of meetings with US Commerce Secretary Gina Raimondo in Beijing on Monday, Chinese Commerce Minister Wang Wentao stated that while the two sides had “candid and constructive” dialogue, continuous US restrictions hampered trade ties.

According to the ministry, Wang “raised serious concerns about issues such as US Section 301 tariffs on Chinese goods, its semiconductor policies, restrictions on two-way investment, discriminatory subsidies, and sanctions on Chinese enterprises.”

According to the official, Washington has abused the “concept of national security” to justify new tariffs and sanctions, claiming that “unilateral and protectionist measures run counter to market rules and the principle of fair competition, and will only harm the security and stability of the global industrial and supply chains.” Noting that US officials have often stated that they do not seek “decoupling from China,” Wang encouraged the US to “match its words with actions.”

President Donald Trump increased taxes on Chinese imports dramatically, launching the first salvo in a tit-for-tat trade war in 2018. A same aggressive posture has been maintained by his successor, Joe Biden, who has implemented a number of initiatives directed at the Chinese economy.

Late last year, the White House issued a new set of export rules aimed at preventing Chinese enterprises from purchasing semiconductors manufactured on US equipment elsewhere in the globe. Just weeks later, the US Treasury added dozens of Chinese tech companies to a trade blacklist, and new reports indicate that US officials are exploring additional restrictions on artificial intelligence-related technology, presumably in order to isolate Beijing from the rapidly burgeoning field.

US officials have frequently characterized China as America’s top “competitor,” accusing Chinese corporations of a variety of illicit activities, including intellectual property theft and even espionage against American citizens. Beijing has refuted such allegations, claiming that Washington is targeting Chinese enterprises for economic benefit while using “national security” as a cover.