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Trump renews China tariff threat, complicating talks

By CHRISTOPHER RUGABER that Beijing has been com-
AP Economics Writer plicit in abusive trading
WASHINGTON (AP) — The practices. The White House,
Trump administration has and many American com-
renewed its threat to place panies, say that China
25 percent tariffs on $50 bil- forces U.S. firms to turn over
lion of Chinese goods in re- technology as part of joint
taliation for what it says are ventures with Chinese com-
China’s unfair trade prac- panies to gain access to its
tices. market. China also subsidiz-
The White House also said es many favored industries.
Tuesday that it would place Trump has frequently fo-
new restrictions on Chinese cused on the trade deficit,
investment into the United urging China to boost its
States and limit U.S. exports imports and lower the gap
of high-tech goods to Chi- by $200 billion, while China
na. has refused to agree to any
The threats come just over dollar amounts.
a week after trade ten- Many experts and U.S.
sions between the world’s companies, however, warn
two largest economies had that China’s efforts to pro-
seemingly eased. Treasury tect its high-tech industries
Secretary Steven Mnuchin and capture U.S. technol-
said May 20 that the trade In this Nov. 9, 2017 file photo, President Donald Trump and Chinese President Xi Jinping shake ogy represent the larger
conflict was “on hold.” hands during a joint statement to members of the media Great Hall of the People in Beijing, China. threat. The Trump adminis-
Mnuchin’s comments fol- Associated Press tration said Tuesday that it
lowed a commitment by think it blows up a deal with In return, the Commerce The list of imports subject plans to shorten the length
China to significantly in- the Chinese.” Department lifted a sev- to the duties will be an- of validity of some visas is-
crease its purchases of U.S. China’s Ministry of Com- en-year ban on ZTE’s pur- nounced by June 15, the sued to Chinese citizens as
farm goods and energy merce responded in a mild chase of U.S. components White House said, and part of a push to counter
products, such as natural fashion Tuesday. The Minis- that it had just imposed the tariffs will be imposed alleged theft of U.S. intel-
gas. try said the White House’s earlier in May. China had “shortly thereafter.” The list lectual property by Beijing.
Commerce Department announcement “is con- complained strongly that will be based on a previous The State Department said
Secretary Wilbur Ross is trary to the consensus the the ban would put ZTE out compilation of 1,300 goods that under the new policy,
scheduled to visit China on two sides have previously of business, costing 70,000 released in April that will be U.S. consular officers may
Saturday to negotiate the reached,” according to jobs. Trump tweeted last narrowed based on public limit how long visas are
details of that agreement. China’s official news agen- month that the ban threat- comments the administra- valid, rather than the usual
Some trade experts said cy, Xinhua. The statement ened too many Chinese tion has received. The list practice of issuing them
the tariff announcement is did not reiterate China’s jobs and he wanted to includes computer equip- for the maximum possible
likely intended to strength- own previous threats to im- get the company “back in ment, aerospace parts, length. Scott Kennedy, a
en Ross’s hand. pose $50 billion in retalia- business, fast.” medical devices, and in- China expert at the Cen-
Other analysts, however, tory tariffs on U.S. goods. GOP and Democratic Sen- dustrial machinery. ter for Strategic and Inter-
say the newly confronta- Members of both parties ators attacked the deal as The tariff threat could still national Studies, said that
tional stance may be in- in the House and Senate insufficient punishment for disrupt Ross’s China talks. many foreign leaders are
tended to appease con- slammed the agreement a company that defied U.S. “If Beijing was under the learning to not overreact
gressional critics of a deal the Trump administration sanctions policy. impression that Trump’s to Trump’s threats, which
the Trump administration reached with ZTE Friday, The White House said Tues- $50 billion of tariffs were are frequently seen as just
made Friday that allowed in which the Chinese firm day that it will focus the tar- actually on hold, they may part of negotiating strat-
Chinese telecom giant ZTE agreed to remove its man- iffs on cutting-edge tech- find this confusing,” Chad egy. That’s good for global
Corp. to stay in business. agement team, hire Ameri- nologies, including those Bown, senior fellow at the stability, he added.
The tariff threat is unlikely to can compliance officers, that China has said it wants Peterson Institute for Inter- “But that means the United
derail ongoing talks, they and pay a fine. The fine to dominate as part of its national Economics, said. States’ credibility is incred-
said. would be on top of a $1 bil- “Made in China 2025” pro- “It could very well compli- ibly low,” he said. “I don’t
“This is really about Con- lion penalty ZTE has already gram. Under that program, cate Wilbur Ross’s visit.” think you can keep doing
gress,” said Derek Scissors, paid for selling high-tech China aims to take a lead- Trump has bemoaned the about-faces, and have ev-
a China specialist at the equipment to North Korea ing role in areas such as massive U.S. trade deficit eryone pretend the threat
conservative American and Iran in violation of U.S. artificial intelligence, robot- with China — $337 billion is as ominous as it was
Enterprise Institute. “I don’t sanctions. ics, and electric cars. last year — as evidence before.”q