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US-China trade war will damage both countries

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Chinese Premier says world’s second largest economy and America may have different views on the issue, but they should sit down and talk first, reported Asia Times (Thailand).

China and the US have to avert a trade war because it would damage both countries as well as the global business environment, Chinese Premier Li Keqiang said at a Beijing media briefing on Wednesday.
“We don’t want to see a trade war, which will result in an unfair trade environment and hurt both sides,” Li said after the closing ceremony of the annual meeting of the National People’s Congress.

The world has a huge interest in the success of Sino-US ties so the relationship between China and the US must develop for the benefit of both countries, he said.
Although China has a trade surplus with the US, more than 90% of the profit generated from the products goes to US companies, while Chinese manufacturers get a profit as low as 2% to 3%, he said.

Sino-US trade and Chinese investments have created more than a million jobs in the US, he said. “Different parties may have different way to handle statistics … no problem. We should sit down and talk and try to reach a consensus.”
He said Chinese President Xi Jinping and US President Donald Trump have talked over the phone and confirmed that both countries will work to develop the Sino-US relationship.

The “One China” policy is the political foundation for cooperation between China and the US, he said, referring to the relationship with Taiwan, which Beijing regards as an integral part of mainland China.
On December 3, Donald Trump, the then president-elect, accepted a phone call from the Taiwanese president, Tsai Ing-wen that generated speculation of a change in US policy towards the island.

China’s foreign ministry urged the relevant parties in the US to abide by the commitment to the One China policy. On February 9, Trump told Xi over the phone that the US would honor the One China policy.

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Secretary of State Rex Tillerson will tell his counterparts in China that the US is prepared to increase financial penalties against Chinese companies and banks that do business with North Korea, according to senior US officials, reported CNN (US).

Tillerson will also engage on the usual areas of US-Chinese tension, including the country's claims to contested waters in the South China Sea; trade; the status of Taiwan; and the recent US deployment of a defensive missile system and drones to South Korea.

An official of China's Ministry of Foreign Affairs said the Chinese hoped the US would not move forward with the new penalties.
"We hope they will not," said Xiao Qian, the Director General of the Asian Affairs department. "Because then it is not fair and that's not right. That's not the correct way of dealing with things."
When pressed on how the Chinese would respond if the US moved forward with new penalties on its banks and businesses, Xiao avoided a direct answer, saying only that the Chinese would wait to hear directly from the State Department.

The Trump administration has already dipped a toe into sanctioning Chinese companies and by doing so is looking to expand a policy that the Obama administration began last year.
The Commerce Department last week announced that a Chinese tech firm, ZTE, would pay a $1.2 billion fine for violating sanctions by selling equipment to Iran and North Korea.
In September, the Obama administration targeted a Chinese company called the Dandong Hongxiang Industrial Development Co. Ltd for ties to North Korea -- the first time the Obama administration hit a Chinese firm with sanctions for dealing with North Korea and supporting its nuclear program.

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