China says US puts knife in hand, difficult to negotiate

BEIJING (Reuters) – A senior Chinese official said on Tuesday that it was difficult to continue trade talks with the United States as Washington "stabbed" China.

The resumption of negotiations will depend on the will of the United States, said Deputy Commerce Minister Wang Shouwen at a press conference in Beijing.

US tariffs on $ 200 billion worth of Chinese goods and Beijing's retaliation for US $ 60 billion products, including liquefied natural gas (LNG), have shaken global financial markets.

"Now that the United States has adopted such a broad trade restraint, how can negotiations continue? This is not an equal bargain, "said Wang, noting that the United States has abandoned mutual understanding with China.

The top Chinese diplomat also told businessmen at a meeting in New York that the talks could not take place against the backdrop of "threats and pressure," the Foreign Ministry said.

Some forces in the United States have criticized China over trade and security, which has poisoned the atmosphere for Sino-US relations and is very irresponsible, said state councilor Wang Yi.

"If this continues, it will destroy in an instant the gains of the last four decades of China-United States. Mr. Wang told the members of the Business Council and the National Committee on US-China Relations.

Representatives of the United States including Blackstone Group LP (BX.Nco-founder and CEO Stephen Schwarzman and Mastercard Inc (MAN) The CEO, Ajay Banga, has posted on his website the National Committee on US-China Relations.

China has also accused the United States of committing "commercial bullying" and said Washington is intimidating other countries to submit to its will, according to a white paper released Monday by the China Business Council.

Several series of Sino-US talks over the last few months do not seem to have succeeded and new mid-term negotiations expected in the coming weeks have been abandoned after Beijing decided not to send a delegation to Washington.

While Vice Minister of Commerce Wang said that he still hoped for "a way out" if the two sides treated each other sincerely, analysts said that neither side seems to want to compromise in the conflict more and more fierce. this could cool the global economy by discouraging business investment and disrupting trade.

"Sharp criticism (from Beijing on Monday) suggests that China may prefer to wait for the current US administration, rather than engage in potentially futile negotiations," Mizuho Bank said in a note to its clients.

"Given these developments, it is increasingly likely that both parties will not resume negotiations for some time, at least until there is a noticeable change in the timing of the negotiations. political mood on both sides. "

DISRUPTING GLOBAL SUPPLY CHAINS

US exporters, including LNG suppliers, would be "certainly" injured, but Beijing's retaliation would provide opportunities for other LNG-exporting countries, said Vice Minister of Commerce Wang, adding that Australia was a source important fuel for China.

"China is a big and powerful nation, whether it is an economic or military confrontation with China, it would be very expensive," the state-backed Global Times reported on Tuesday.

"As such, it is interesting for other countries, including the United States, to coexist peacefully with China," said the paper, published by the People's Party of the ruling Communist Party.

China does not know why the United States has changed its mind after entering into an agreement with China on trade, Wang said. He was apparently referring to talks in May, when it became apparent that both parties had settled a cadre before the White House retreated.

Luo Wen, a vice minister of the Ministry of Industry and Information, said at a press conference that the government was aware that some foreign companies were planning to leave China .

But he said the government is working to meet their needs and reduce their tax burden.

However, the trade war may disrupt global supply chains and plunge them into chaos, Luo said.

Senior officials also rejected Washington's accusations that China would force foreign companies to share their technology with Chinese joint venture partners, adding that Beijing had adopted a rule banning government entities from such illegal behavior.

"The government has not forced this, and many joint ventures have performed very well in China," said Wang, giving the example of the US auto giant Ford (F.N).

"Ford produces more cars and makes more profits in China thanks to its JV than in the United States," he said.