China cancels trade talks with US

Cheryl Sanders
September 24, 2018

Beijing had prepared to send Vice Premier Liu He, the country's top-ranking economic official, to Washington next week, along with a mid-level delegation to prepare for his visit, the Wall Street Journal reported.

China's move is bound to ratchet up its tensions with the US.

The two countries already exchanged tariffs on $50bn worth of each other's goods earlier this year.

President Donald Trump's latest round of punitive tariffs on China took effect on Monday, adding US$200 billion in Chinese imports to the escalating trade war that is clouding the global economic horizon.

Chinese products hit with new USA duties include vacuum cleaners to internet-connected devices, while United States goods targeted by Beijing include liquefied natural gas and certain types of aircraft.

Economists warn that a protracted dispute will eventually stunt growth not just in the USA and China but across the broader global economy.

Several rounds of Sino-U.S. trade talks in recent months have yielded no major breakthroughs and attempts at arranging another meeting in coming weeks have fallen through.

Soon after the fresh duties went into effect, China accused the United States of engaging in "trade bullyism" and said it was intimidating other countries to submit to its will through measures such as tariffs, the official Xinhua news agency said.

Soon after the new duties went into effect, China accused the US of engaging in "trade bullyism" and said it was intimidating other countries to submit to its will, the official Xinhua news agency said, reiterating China's willingness to fight if necessary.

China reached into the USA heartland in its escalating trade war over President Donald Trump's tariffs, using an advertising supplement in Iowa's largest newspaper to highlight the impact on the state's soybean farmers as "the fruit of a president's folly".

China outlined a matching bump in tariff rates for the targeted $60 billion of goods, but it is running out of targets to even the score on Trump´s threatened third tariff wave.

On Thursday, in a first, the Trump administration imposed sanctions on a unit of China's defence ministry for buying fighter jets and missiles from Russian Federation.

"The U.S. -China trade war has no clear end in sight".

"With generic polls favoring the Democrats, they may feel that the trade environment will be less hostile after November 6". The lower Chinese figure highlights Beijing's inability to match the USA dollar-for-dollar in a tariff war.

The Trump administration will levy tariffs of 10% on the $200bn of Chinese products, with the tariffs to go up to 25% by the end of 2018. The Trump administration has also called on China to allow USA companies greater access to Chinese markets and to cut its US trade surplus.

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