China US

Chinese Vice Premier Liu He held a video conversation with US Treasury Secretary Janet Yellen on Tuesday and raised concerns about the US’ imposing additional tariffs on Chinese goods and sanctions against China, as news reports emerged from the US recently that Washington may lift the tariffs.

The two sides also reached a common view that the two countries should strengthen macro-policy communication and coordination, as well as jointly maintaining the stability of the global industrial and supply chains, according to a report by Xinhua News Agency.
 
According to Xinhua, Liu, who is also chief of the Chinese side for the China-US comprehensive economic dialogue, held a video conversation with Yellen on Tuesday morning at the latter’s request.

The two sides had a “pragmatic and candid” exchange of views on such topics as the macroeconomic situation and the stability of the global industrial and supply chains, according to Xinhua. 

They agree that as the world economy is facing severe challenges, it is of great significance to strengthen macro-policy communication and coordination between China and the US. And jointly maintaining the stability of the global industrial and supply chains is in the interests of both countries and the whole world.

Also, China expressed its concern about issues including the lifting of additional tariffs on China and sanctions by the US side, as well as fair treatment of Chinese enterprises. The two sides also agree to maintain communication, according to the report.

The communication came at a time when the Biden administration is reportedly considering adjusting the punitive tariffs on Chinese goods imposed by former US president Donald Trump. According to Bloomberg, Biden might announce as soon as this week a rollback of some US tariffs on Chinese consumers goods, as the US government is looking for ways to combat surging inflation. 

On the other hand, the US government might even get tougher in some other areas as a way of cracking down on China’s continued rise. The aforementioned Bloomberg report, for example, noted that Biden may launch a new probe into industrial subsidies that could lead to more duties in strategic areas like Chinese developed technology. 

The talk is of crucial importance amid complex and grim global geopolitical and economic situation, He Weiwen, an executive council member of the China Society for World Trade Organization Studies, told the Global Times on Tuesday.

It reflects China’s active efforts to support globalization and seeking cooperation with the US to contribute to a stable and sustainable global economic recovery as a responsible country, He said.

As for China’s persistent requirement of lifting additional tariffs imposed on Chinese products, He said that the country firmly maintains its rights and interests and is strongly against Western countries’, especially the US, escalating containment of China.

“The source of potential systemic risks for the US is soaring inflation and potential domestic recession rather than China. Instead of containing China – which is doomed to fail – the US should seek win-win cooperation with China,” He said, noting that the US should remove additional tariffs and technological blockade on China as soon as possible to jointly support multilateralism and global cooperation.

He also predicted that the Biden administration may lift tariffs on Chinese consumer products, while those connected with the so-called national security and curbing China’s science and technology development may remain. 

“The longer the Biden administration hesitates, the more the US and American people will lose,” Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation of China's Ministry of Commerce, told the Global Times on Tuesday.

These tariffs have no more effect except making US consumers spend more and threaten the US economy, Mei said. In order to thoroughly solve its domestic economic problems and avoid falling into the plight of great inflation the US had experienced in 1970s, the Biden administration should reverse its harmful actions right now, including widespread sanctions against Russia and ultra-loose monetary policies, he said.

Global Times