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Thursday, April 19, 2018, 23:03
China: Trade war will hurt US consumers, global growth
By Xinhua
Thursday, April 19, 2018, 23:03 By Xinhua

This April 6, 2018 photo shows the Ministry of Commerce (MOC) in Beijing, capital of China. A MOC spokesperson said on April 19, 2018 that the US action against China's leading telecom giant ZTE will ultimately undermine the US’ own interest. (LI HE / XINHUA)

BEIJING – A trade war will not protect US workers and will hurt US consumers and global growth, China's Ministry of Commerce said Thursday.

China does not want escalating trade frictions with the United States, but is well prepared to take countermeasures to any further US moves in the wrong direction, said Gao Feng, spokesperson with the MOC.

READ MORE: Envoy: China does not want trade war, but must defend itself

The United States should not misjudge the situation, and China has strong resolution to maintain reform and opening up as well as fight unilateralism and trade protectionism, Gao added.

We hope the United States doesn't fancy itself clever, or it will only reap the bitter fruits from what it has sown. 

Gao Feng, Spokesperson, Ministry of Commerce, China

Gao added that the US action against China's leading telecom equipment maker ZTE Corp will damage itself. 

"The action targets China. However, it will ultimately undermine the United States itself," said Gao.

The United States will lose tens of thousands of job opportunities while hundreds of related US enterprises will also be affected, he said.

READ MORE: US decision on ZTE stokes tensions with China

The act has fueled widespread concerns regarding US investment and the business environment, said the spokesperson. 

"We hope the United States doesn't fancy itself clever, or it will only reap the bitter fruits from what it has sown." 

The US Department of Commerce has imposed a denial of export privileges against ZTE Corp for alleged violations of the Export Administration Regulations. 

The US side should not underestimate China's determination, said Gao.

ALSO READ: China urges US to treat Chinese firms fairly after ZTE ban

In this Feb 27, 2017 photo, visitors pass in front of the ZTE stand on the first day of the Mobile World Congress in Barcelona in Barcelona. (LLUIS GENE / AFP)

WTO measures 'shouldn't be abused'

Gao said China does not want to see World Trade Organization trade remedy measures abused or used for protectionism.

Over-use of trade remedy measures in certain sectors will not sustain booming industrial growth, 

Gao Feng, Spokesperson, Ministry of Commerce, China

The US commerce department Wednesday launched anti-dumping and anti-subsidy measures against Chinese steel wheels and decided that general-purpose aluminum alloy plates from China received government subsidies.

"Steel products have become a major target of US trade remedy measures, which account for over half the country's total trade remedy measures," Gao said.

"Over-use of trade remedy measures in certain sectors will not sustain booming industrial growth, and China hopes the United States will return to the right track of win-win cooperation to help promote global trade and nurture domestic industries," Gao said.

China positive on foreign trade outlook

Talking about China's foreign trade, Gao said the outlook remains positive despite seasonal fluctuations and uncertainty arising from protectionism.

ALSO READ: Chinese economy seen resilient enough to cope with trade war

"The trend of steady development with a positive outlook for the country's foreign trade has not changed," Gao said.

He said the trade deficit recorded last month was mainly due to the Spring Festival, which affected production and exports.

China posted a trade deficit of 29.78 billion yuan in March, the first monthly deficit since February 2017.

Growing global demand amid a recovering world economy, as well as China's sound economic fundamentals and supply-side structural reforms, will support foreign trade, Gao said.

China reviewing Qualcomm's bid for NXP

China is reviewing US smartphone chip supplier Qualcomm's bid to acquire its Dutch rival chipmaker NXP Semiconductors based on anti-trust laws, Gao said.

The company has to receive approval from market regulators in nine countries to seal the deal, he said, adding that the acquisition might lead to a major impact on the market and compromise competition.

The MOC has talked with Qualcomm over reducing unfavorable influences of the acquisition, Gao said. Investigators have decided that the company's remedy proposal might not help address market competition concerns, he added.

Qualcomm has withdrawn its previous acquisition application and resubmitted a new one to the MOC. The MOC will conduct an open and fair anti-monopoly investigation on the issue, said the spokesperson.

Anti-dumping measures on sorghum, chlorobutyl rubber

The MOC also announced on Thursday that it will impose provisional anti-dumping measures on chlorobutyl rubber imported from the United States, the European Union, and Singapore and similar measures on grain sorghum imported from the US.

A preliminary ruling by the MOC found that companies from these countries had dumped products on the Chinese market, and such imports had caused substantial damage to the domestic industry.

Starting on Friday, importers of chlorobutyl rubber are required to pay deposits with Chinese customs calculated based on a rate ranged from 26 percent to 66.5 percent, according to the ministry.

The tariff for grain sorghum imports will take effect on Wednesday, when importers required to pay deposits with Chinese customs based on a rate of 178.6 percent calculation. 

The higher tariff on US sorghum will generally not impact domestic consumption, Gao said pointing out that China is a major grain producer with steady output in recent years. 

China's total grain imports from the US, including wheat and corn, account for less than 2 percent of domestic consumption, according to the MOC data.

China-Russia trade 

China-Russian relations are mature and stable, and will not be affected by the external environment 

Gao Feng, Spokesperson, Ministry of Commerce, China

As for China-Russia trade, Gao said trade between the two countries is likely to exceed US$100 billion this year, after an increase of nearly 30 percent in the first quarter.

"China-Russian relations are mature and stable, and will not be affected by the external environment," Gao said.

In recent years, bilateral economic and trade relations have entered the "fast lane," with rapid trade growth, accelerated investment cooperation and progress in cooperation on major strategic projects, Gao said.

Last year, trade between both countries rose 20.8 percent to US$84.07 billion, and China stayed the largest trade partner of Russia for the eighth year.

"Next, China will continue to take strong measures to optimize the bilateral trade structure by expanding the trade of mechanical and electrical products and high-tech products," Gao said. 

According to him, measures will also be taken in expanding market access for farm produce, developing cross-border commerce and promoting trade facilitation.

"We stand ready to work with Russia and make a success of both the fifth China-Russia Expo in July and the China International Import Expo in November," said Gao, adding efforts will be made to boost trade and set up sound platforms for cooperation at local and corporate levels. 

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