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August 22, 2017

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China to ‘defend interests’ as US launches trade probe

CHINA will take “all appropriate measures” to defend its legal interests, it said yesterday, in response to a US trade investigation that has aroused tension between the world’s two largest economies.

The US Trade Representative formally announced the investigation last Friday, a widely expected move following a call from President Donald Trump earlier in the week to determine whether one was needed.

The investigation is the administration’s first direct measure to be taken against Chinese trade practices, which the White House and some US business groups say “are damaging” American industry.

China’s commerce ministry said in a statement that the move sent the wrong signal to the world, and would be condemned by the international community.

“The United States’ disregard of World Trade Organization rules and use of domestic law to initiate a trade investigation against China is irresponsible, and its criticism of China is not objective,” an unnamed spokesman for the ministry said.

“China expresses strong dissatisfaction with the United States’ unilateral protectionist action,” he said.

“We urge the United States to respect facts, respect wishes from businesses of both countries for cooperation, respect multilateral rules, and act with prudence,” he said, adding that China would take “all appropriate measures and resolutely defend China’s lawful interests.”

The US should instead work with China to find consensus and promote healthy trade relations, the ministry spokesman said.

US Trade Representative Robert Lighthizer formally initiated the investigation into China’s intellectual property practices under a rarely used trade law, despite worries about the potential harm it posed to China-US trade ties.

Section 301 of the Trade Act of 1974, once heavily used in the 1980s and the early 1990s, allows the US to unilaterally impose tariffs or other trade restrictions on foreign countries. But the country has rarely used the outdated trade tool since the WTO came into being in 1995.

The commerce ministry spokesman called the move “irresponsible” as it was based on domestic law and defied WTO rules, and US criticism of China’s IP protection was “not objective.”

“China is strongly discontented about such unilateral, protectionist practice,” the spokesman said.

Since a historic meeting between the presidents of both countries in April, the two sides have made solid progress, the spokesman added.

He called for the US to make joint efforts with China to promote economic cooperation and to strive to obtain bigger results.




 

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