The United States and China on Tuesday expressed concerns over trade between the world’s two largest economies, with China’s commerce minister urging Washington to lift sanctions on its country’s companies “as soon as possible.”
Chinese Commerce Minister Wang Wentao’s call with US Commerce Secretary Gina Raimondo was described by Beijing as “sincere, in-depth and realistic”.
It comes shortly after steep US tariffs on Chinese electric vehicles, EV batteries and solar cells took effect — with levies down the line for other products also recently finalized.
In addition, the United States plans to ban the sale of connected vehicles incorporating Chinese and Russian technology, citing national security risks.
Washington has also restricted technology exports to China, such as semiconductors and the machinery used to make them.
On Tuesday, Wang “focused on raising serious concerns about the US semiconductor policy in China and its restrictions on China’s grid-connected cars,” a statement from Beijing’s commerce ministry said.
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Wang “stressed that it is especially necessary to clarify the boundaries of national security in the economic and trade fields.”
This will allow “maintaining the security and stability of global industrial and supply chains,” the ministry said.
However, a separate statement released by the US Commerce Department said Raimondo had reiterated that US national security was “non-negotiable”.
He pointed to the US administration’s approach to be targeted with security policy “while leaving room for healthy trade and investment,” the statement said.
Raimondo pointed to ongoing concerns, including from U.S. businesses, about “decreasing regulatory transparency,” non-market policies and industrial overcapacity, the U.S. statement added.
Meanwhile, Beijing urged Washington to “pay attention to the specific concerns of Chinese companies, lift sanctions on Chinese companies as soon as possible, and improve the business environment for Chinese companies in the United States.”
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Back on track
Recent tariff hikes targeting $18 billion in Chinese goods came weeks before November’s US presidential election, with Democrats and Republicans pushing hard lines as competition between Washington and Beijing intensifies.
US President Joe Biden has largely maintained the tariffs imposed by former President Donald Trump, which affected about $300 billion in goods from China. The increases this year affect earlier and added products.
The United States is defending its restrictions on sensitive high-tech products, aimed at limiting Chinese companies’ access to cutting-edge equipment bought abroad, particularly for military purposes.
China has condemned these restrictions as “protectionist”.
And on Tuesday, Wang said trade ties between the world’s two largest economies “must become the ballast of bilateral relations.”
Beijing, he said, was eager to push “China-US economic and trade relations back on track.”
The US Commerce Department noted that both sides “agreed to maintain an open channel of communication in the coming months.”
Source: AFP