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China says U.S. can't use pressure to force trade deal

Published 06/02/2019, 06:42 AM
Updated 06/02/2019, 06:42 AM
© Reuters. Containers are seen at a port in Huaian

By Cate Cadell

BEIJING (Reuters) - The United States cannot use pressure to force a trade deal on China, a senior Chinese official and trade negotiator said on Sunday, refusing to be drawn on whether the leaders of the two countries would meet at the G20 summit to bash out an agreement.

Trade tensions rose sharply last month after U.S. President Donald Trump's administration accused China of having "reneged" on its previous promises to make structural changes to its economic practices.

Washington later slapped additional tariffs of up to 25% on $200 billion of Chinese goods, prompting Beijing to retaliate.

Speaking at a news conference, Chinese Vice Commerce Minister Wang Shouwen said it was irresponsible of the United States to accuse China of backtracking.

"If the U.S. side wants to use extreme pressure, to escalate the trade friction, to force China to submit and make concessions, this is absolutely impossible," said Wang, who has been part of China's negotiating team.

Switching into English, he said: "Nothing is agreed until everything is agreed".

"During the consultations, China has overcome many difficulties and put forward pragmatic solutions. However, the U.S. has backtracked, and when you give them an inch, they want a yard," he said.

Wang said the U.S. had made "unreasonably high" demands and insisted on adding "demands relating to China's sovereign rights" to the countries' agreement. The raising of tariffs escalated tensions and severely frustrated the talks, he added.

His comments were echoed by Chinese Defense Minister Wei Fenghe at a defense forum in Singapore on Sunday.

"If the U.S. wants to talk, we will keep the door open. If they want a fight, we will fight till the end," Wei said.

Trump has said he will meet President Xi Jinping at the G20 summit in Osaka at the end of the month, though China has not confirmed the meeting.

When asked if Xi would meet Trump in Japan, Wang said: "I don't have any information on this to provide."

WHITE PAPER

Wang, who was speaking at the unveiling of a new government policy paper on the trade war, said U.S. officials overestimate the trade deficit between the two countries and China should not be blamed for a decline in U.S. manufacturing jobs.

The U.S. goods and services deficit with China is closer to $150 billion and not the $410 billion quoted by U.S. officials, he said, adding that China's processing trade with the United States should not be included in deficit calculations.

The white paper cited three instances of the U.S. backtracking on its commitments, adding that Washington was reponsible for setbacks in the talks.

It said China had enough fiscal and monetary policy tools and "good momentum" to sustain economic development despite the trade war. Data last week showed China's factory activity shrank in May at a more severe pace than expected.

It followed soft data in China's retail, export and construction sectors, raising expectations that Beijing may need to roll out more stimulus to support the economy.

Wang also rejected assertions that Beijing is directing domestic companies on overseas acquisitions and investments.

"China's government is not involved in the specific commercial behavior of companies, and won't instruct or require companies to invest in a project or buy a technology," he said.

Wang reiterated that China is willing to meet demand for rare earths from other countries, but it would be unacceptable if some nations used Chinese rare earths to create products that limited China's development.

Xi's visit to a rare earths plant last month sparked speculation that China would use its dominant position as an exporter of rare earths to the United States as leverage in the trade war.

Wang said the commerce ministry is investigating reports of delays in customs checks and will make efforts to speed up inspections and reduce costs for importers.

© Reuters. Containers are seen at a port in Huaian

A top U.S. business lobby group said last month that its members face increased obstacles in China such as government inspections, slower customs clearance and slower approval for licensing and other applications.

Latest comments

US should fully utilise its leverage now...before it too late. ***trust a totalitarian regime
China says U.S. cant use pressure on trade deals ?China is ! Bottom line - U.S wants at least fair trade !
I'm just as tired of this tariff bs as the next guy. However, we're not dealing with just any country or company. We're talking about Huawei. A defacto arm of China's government. Otherwise, why does China's Central government run to its (Huawei's) defense all the time? There's more going on here than people realize. China's been "playing" the US for years. It's time to get tough on China.
Let's just cut off all trade with China. File International bankruptcy with China debt. And wipe the slate clean.
That's what China did with never repaying the debt on a trillion dollars of bonds from U.S.
If Huwaei isn't a pawn of the Chinese government then why do they act as if it's attack on China everytime Huwaei is targeted. The US doesn't stick up for Apple when they get pushed around by other countries. There's something weird going on here.
not just Huawei, us added more than 10 companies to the entity list. This reminds China that some us companies are so unreliable that they need be monitored. You probably won't agree with me, but I just want to say treat others as you want be treated, the same principal applies to the country relationship
I'm so tired of trade wars and Tarrifs. Nobody wins this. The economy is so connected that every economic lever pulled causes issues somewhere else.
Try to explain butterfly effect to as........ holes it is wasting time. In god they trust, wich is a theory
but Trump don't agree. so unfortunately.
You don't negotiate with a bull in a china shop.  The bull deserves a cattle-prod up you-know-where or worse
They make a more logical argument, so it's harder to believe US. Maybe they sensed China backing off and tariff threat was them trying to be the first to cry foul; smart move I guess.
let Asia work together fight western
Now China is playing the victim card. What's next?
dustbin of history
President Trump didn’t accuse China of reneging on its previous promises. He stated as fact that they did. Reuters is such a lap dog for Xi.
short means , up or down? I am new in trade!!!
Even u are new in trade, you have to study all these terms first before trading
 it's light time to begin. after mrTrump became a president I don't know about stock market anything. but was easy to play up. now is easy to play down. period of certainty
Big short on Monday oO
any deal with communists is impossible. oil traders are realists, they exactly react on political conjuncture. why somebody belive in china deal is mystery for me
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