Beijing accuses Donald Trump of ‘bullying’ tactics in trade war

China has warned that the US actions in launching a trade war pose a ‘grave threat to the multilateral trading system’.

The US tariffs now cover almost all of China’s $US500 billion in exports to America. Picture: AFP

China has accused US President Donald Trump of using “bullying” tactics on trade and warned that his actions in launching a trade war pose a “grave threat to the multilateral trading system”.

In a white paper released in Beijing yesterday, as US tariffs of 10 per cent on another $US200 billion ($275bn) on China’s exports went into place, China has hit back, attacking the Trump administration’s “America First” policy and its trade war tactics as using “extreme pressure” and “intimidation” by attempting to impose its own interests on China.

It said the Trump administration had “brazenly preached unilateralism, protectionism and economic hegemony” and had made false accusations against many countries, including China.

It had also been “intimidating other countries” by economic measures including imposing new tariffs on exports.

It expresses concern at the sharp deterioration of relations with the US in recent times, which “poses a grave threat to the multilateral trading system and the principle of free trade”.

The paper reflects the worsening relation between China and the US as Mr Trump has continued to escalate the trade war by imposing higher tariffs on a total of $US250bn of Chinese imports in the past few months.

Mr Trump has also threatened to impose tariffs on another $US267bn worth of exports to the US, covering almost the entire span of Chinese exports.

But while China has retaliated with higher tariffs against a total of $US110bn in US imports, its scope to hit back is limited as it only imports around $US130bn in goods from the US, while the US imports more than $US500bn worth of goods from China.

It cancelled plans for a senior economic envoy, vice premier Liu He, to visit Washington this week for further talks to try to resolve the situation after Mr Trump’s moves last week to significantly escalate the situation.

China has broader scope to retaliate against US companies doing business in China, including rejecting licensing applications.

But so far it has continued to argue for negotiations to resolve the issue while also lodging complaints about US actions with the World Trade Organisation.

Last night’s white paper significantly turns up the rhetoric against the US although it does not signal any new action against the Trump administration.

But its language could well pave the way for more serious retaliation from Beijing in time.

The white paper warns there has been a serious deterioration in relations between the US and China, which posed a grave threat to world trade.

It says China has been dealing with the situation by trying to negotiate and seek common ground with the US and “proposing practical solutions”.

It says China has handled the situation with “the greatest level of patience and good faith” but it says the US side had been “contradicting itself and constantly challenging China”.

It points out that China and the US have worked hard over the past 40 years of China’s opening up to develop a strong economic relationship with communication and co-ordination mechanisms such as the Joint Commission on Commerce and Trade, the ­Strategic Economic Dialogue and the Comprehensive Economic Dialogue.

But it said Mr Trump’s America First policy had “abandoned the fundamental norms of mutual respect and equal consultation that guide international relations”.