WASHINGTON, May 13 (NNN-AGENCIES) — The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests.
The trade war between the world’s top two economies escalated on Friday, with the United States hiking tariffs on US$200 billion worth of Chinese goods after President Donald Trump said Beijing “broke the deal” by reneging on earlier commitments made during months of negotiations.
White House economic adviser Larry Kudlow told the “Fox News Sunday” program that China needs to agree to “very strong” enforcement provisions for an eventual deal and said the sticking point was Beijing’s reluctance to put into law changes that had been agreed upon. Kudlow said the US tariffs would remain in place while negotiations continue.
Beijing remained defiant.
“At no time will China forfeit the country’s respect, and no one should expect China to swallow bitter fruit that harms its core interests,” the People’s Daily, a newspaper controlled by the Chinese ruling Communist Party, said in a commentary on Monday.
It said Beijing was open to talks but would not yield on important issues of principle.
China’s nationalist Global Times tabloid said in an editorial on Monday that the country had no reasons to fear a trade war.
“The perception that China cannot bear it is a fantasy and misjudgment,” the commentary said.
“If they weren’t being seriously provoked, the Chinese people would not favor any trade war. However, once the country is strategically coerced, nothing is unbearable for China in order to safeguard its sovereignty and dignity as well as the long-term development rights of the Chinese people.”
On Sunday, Trump sought to portray the United States as being in an advantageous position.
“We are right where we want to be with China,” Trump wrote on Twitter, saying US purchasers of Chinese goods could either buy them from domestic manufacturers or from other nations.
Trump also repeated an erroneous statement that the United States would be taking in “Tens of Billions of Dollars in Tariffs from China.”
The tariffs are not paid by the Chinese government or by firms located in China. They are paid by importers of Chinese goods, usually American companies or the US-registered units of foreign companies. These often pass on the costs to customers, mostly manufacturers and consumers in the United States.
Kudlow, when asked who was paying, said “both sides will suffer on this”, contradicting Trump, although he added that the US economy should be able to cope.
Kudlow said there is a “strong possibility” that Trump will meet Chinese President Xi Jinping at a G20 summit in Japan in late June. — NNN-AGENCIES
