China's President Promises To Cut Auto Import Tariff, Files US Tariff Complaint


China's President Promises To Cut Auto Import Tariff, Files US Tariff Complaint

As the economic saber-rattling shakes global markets, Trump said Monday he had a good relationship with China and with President Xi Jinping, but repeated his claim that China has been "taking advantage of the United States for many years".

HOPES FOR TRADE: Speaking at a business conference, Xi made no direct mention of the trade dispute with the USA, but promised changes in areas that the US has identified as priorities.

Washington is accusing Chinese firms of stealing the trade secrets of U.S. companies and forcing them into joint ventures to acquire their technology - the crux of Trump's current tariff threats against China.

The dust-up suggests that the trade dispute won't be resolved quickly, despite Trump's optimistic tweets and Xi's conciliatory address to a regional economic forum Tuesday.

If the two sides can't agree on a solution, the next step could be for Beijing to request a ruling from a panel of trade experts.

China charges total duties of 25 per cent on most imported cars - a 10 per cent customs tariff plus a 15 per cent auto tax.

The Commerce Ministry denied Thursday that had anything to do with the dispute with Washington and said negotiations were impossible while Trump was threatening tariff increases on a possible $100 billion list of additional goods.

"The Chinese government has done a more thorough analysis of the impact than the USA government has", Burke said.

But trade penalties often spook foreign companies, making the business environment seem risky.

Jake Parker, the vice-president for China of the U.S. USA companies have long argued that China uses a range of tactics to force them to transfer intellectual property such as industrial designs and patents, and that Chinese entities engage in widespread theft of US trade secrets.

As seen in the chart below from Westpac Bank, China's trade surplus with the United States has ballooned over the past decade as exports to the U.S. grew substantially faster than imports heading in the other direction. "When a auto is sent to China from the United States, there is a Tariff to be paid of 25%", Trump tweeted on Monday. "We will keep an eye on the progress of those opening-up measures".

"China is laying a preliminary foundation to talk with the U.S.", said Pang Zhongying, a Beijing-based global relations expert. The United States filed a WTO complaint last month accusing Beijing of violating its trade pledges by imposing unfair contract terms and allowing companies to use foreign-owned technology after licensing periods expire. Xi reinforced that previous year when he spoke at Davos for the first time in a rousing defense of free trade and climate change.

"We don't need another subsidy program, we need to sell our product", said Sen. If that fails, the Chinese government can ask for a ruling from a WTO panel of experts. But business groups from outside China argue that joint venture and licensing rules make coerced transfers of technology unavoidable. "Of that amount, most are German-branded luxury SUVs", they write. China then would certainly proceed with the matching tariffs on $50 billion that it has identified.

Information for this article was contributed by Paul Wiseman, Joe McDonald, Ken Thomas and Tom Krisher of The Associated Press and by Alan Bjerga of Bloomberg News.

Foreign direct investment (FDI) between the USA and China declined by nearly a third in 2017 from the previous year, mainly because of Beijing's curbs on overseas spending and Washington's tighter scrutiny of Chinese investments, a new report has found. Mercedes exports up to 75,000 luxury vehicles from the p.



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