China attacks America's bullying on trade


The US has "made a series of false accusations, and used increasing tariffs and other means of economic intimidation, to try to impose its own interests on China by way of extreme pressure", China's State Council said in a white paper on trade and economic tensions with Washington.

U.S. tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of United States products took effect at midday Asian time, though the initial level of the duties was not as high as earlier feared.

China's retaliatory levies target 5,200 United States goods worth $60 billion with new five to 10 percent tariffs, including big ticket items such as liquefied natural gas, lumber and electronics, as well as peppermint oil, pig hides and condoms.

Meanwhile, $US110 billion of goods from the US will become subject to Chinese retaliatory tariffs around the same time.

Sino-US trade talks have been hard to proceed, with the United States putting a "knife to China's neck", Chinese vice commerce minister Wang Shouwen said on Tuesday.

China also accused the United States of engaging in "trade bullyism", and said Washington was intimidating other countries to submit to its will, according to a white paper on the dispute published by China's State Council, or Cabinet, on Monday.

Earlier, the two sides imposed 25 per cent penalties on $34 billion of each other's goods in July and another $16 billion in August.

Relations between Washington and Beijing are already strained as the two economic superpowers slap each other with a new round of trade tariffs.

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Rob Carnell, ING's chief Asia economist, said in a note to clients that in the absence of any incentives Beijing would likely hold off on any further negotiations for now.

Hong Kong stocks fell, while volumes across Asia were thinner than average due to holidays in the largest markets, China and Japan.The latest round of USA duties took effect just after midnight Washington time on Monday (midday in Beijing) on a list of products ranging from frozen meat to television components.

China has postponed weekend trade talks with the United States.

Beijing's plans to cut costs for exporters and recently announced a plan to reduce taxes exporters have to pay.

Markets reacted negatively to the most recent developments in the tit-for-tat trade dispute with the United States and China.

Several rounds of talks in recent months have failed to produce a significant breakthrough and fresh negotiations which had been expected in coming weeks have been cancelled after Beijing reportedly decided late last week not to send a delegation to Washington. A protracted trade war will fuel inflation in the US, particularly as tariffs are added to categories such as furniture, apparel and technology, according to analysts at Bloomberg Intelligence. "With thousands of consumer products included, little warning, and no time to prepare, businesses are left scrambling".

It indicates that about 70 percent of the value of goods imported from, the United States to China will face tariffs by the end of 2018.