Page 6 - ARUBA TODAY

A6 U.S. NEWS
Wednesday 4 april 2018

U.S. proposes tariffs on $50 billion in Chinese imports

By PAUL WISEMAN secrets from the American
AP Economics Writer company AMSC and near-
WASHINGTON (AP) — The ly putting it out of business.
Trump administration on And in 2014, a Pennsyl-
Tuesday escalated its ag- vania grand jury indicted
gressive actions on trade five officers in the Chinese
by proposing 25 percent People’s Liberation Army
tariffs on $50 billion in Chi- on charges of hacking into
nese imports to protest the computers of Westing-
Beijing’s alleged theft of house, US Steel and other
American technology. major American compa-
The Office of the U.S. Trade nies to steal information
Representative issued a list that would benefit their
targeting 1,300 Chinese Chinese competitors.
products, including industri- To target China, Trump
al robots and telecommu- dusted off a Cold War
nications equipment. The weapon for trade disputes:
suggested tariffs wouldn’t Section 301 of the U.S.
take effect right way: A Trade Act of 1974, which
public comment period lets the president unilater-
will last until May 11, and ally impose tariffs. It was
a hearing on the tariffs is meant for a world in which
set for May 15. Companies much of global commerce
and consumers will have In this March 23, 2018, file photo, a woman wearing a uniform with the logo of an American wasn’t covered by trade
the opportunity to lobby to produce company helps a customer shop for apples a supermarket in Beijing. agreements. With the ar-
have some products taken Associated Press rival in 1995 of the Geneva-
off the list or have others based World Trade Organi-
added. pare equal measures for some critics that American China’s abuse of econom- zation, Section 301 largely
The latest U.S. move risks U.S. products with the same will end up being hurt. ic and trade policy,” said faded from use.
heightening trade tensions scale” according to regu- “If you’re hitting $50 billion Robert Atkinson, president Dean Pinkert of the law firm
with China, which on Mon- lations in Chinese trade in trade, you’re inevitably of the Information Technol- Hughes Hubbard & Reed,
day had slapped taxes on law, a ministry spokesman going to hurt somebody, ogy and Innovation Foun- found it reassuring that the
$3 billion in U.S. products in said in comments carried and somebody is going to dation think tank. “But im- administration didn’t com-
response to earlier U.S. tar- by the official Xinhua News complain,” said Rod Hunt- posing tariffs on producer pletely bypass the WTO: As
iffs on steel and aluminum Agency. er, a former economic offi- goods will inadvertently part of its complaint, the
imports. The U.S. sanctions are in- cial at the National Security hurt Americans through re- U.S. is bringing a WTO case
“China’s going to be tended to punish China for Council and now a partner duced capital investment against Chinese licensing
compelled to lash back,” using strong-arm tactics in at Baker & McKenzie LLP. and lower productivity policies that put U.S. com-
warned Philip Levy, a se- its drive to become a glob- Even representatives of growth.” panies at a disadvantage.
nior fellow at the Chicago al technology power. These American business, which At the same time, the Unit- China has been urging
Council on Global Affairs include pressuring Ameri- have complained for years ed States has become in- the United States to seek
and an economic adviser can companies to share that China has pilfered U.S. creasingly frustrated with a diplomatic solution and
to President George W. technology to gain access technology and discrimi- China’s aggressive efforts warning that it would re-
Bush. to the Chinese market, nated against U.S. compa- to overtake American taliate against any trade
Indeed, China immediate- forcing U.S. firms to license nies, were critical of the ad- technological supremacy. sanctions. Beijing could
ly threatened to retaliate their technology in China ministration’s latest action. And many have argued counterpunch by targeting
against the new U.S. tar- on unfavorable terms and “Unilateral tariffs may do that Washington needed American businesses that
iffs, which target the high- even hacking into U.S. more harm than good to respond aggressively. depend on the Chinese
tech industries that Beijing companies’ computers to and do little to address the “The Chinese are bad trad- market: Aircraft manufac-
has been nurturing, from steal trade secrets. problems in China’s (intel- ing partners because they turer Boeing, for instance,
advanced manufacturing The administration sought lectual property) and tech steal intellectual property,” or American soybean farm-
and aerospace to informa- to draw up the list of tar- transfer policies,” said John said Derek Scissors, a China ers, who send nearly 60
tion technology and ro- geted Chinese goods in a Frisbie, president of the U.S.- specialist at the conserva- percent of their exports to
botics. Early Wednesday in way that might limit the im- China Business Council. tive American Enterprise China. Rural America has
Beijing, China’s Commerce pact of the tariffs — a tax Even some technology Institute. been especially worried
Ministry said it “strongly on imports — on American groups contending directly In January, a federal court about the risk of a trade
condemns and firmly op- consumers while hitting with Chinese competition in Wisconsin convicted a war. Farmers are especially
poses” the proposed U.S. Chinese imports that ben- expressed misgivings. Chinese manufacturer of vulnerable targets in trade
tariffs and warned of retal- efit from Beijing’s sharp- “The Trump administration wind turbines, Sinovel Wind spats because they rely so
iatory action. “We will pre- elbowed tech policies. But is right to push back against Group, of stealing trade much on foreign sales.q