On Wednesday, China lashed out at threats from the White House on potential trade troubles. China warned that they are ready to fight back if the U.S. is looking for a trade war. This happened only a few days before Wilbur Ross is set to visit China. Ross is the U.S. Commerce Secretary.
Washington Restrictions
On Tuesday, the U.S. announced that they are still considering imposing taxes on $50 billion on China’s imports. The U.S. said that this will happen if China doesn’t address the issue of stealing American intellectual property.
Washington also announced that it will push with restrictions on investments by Chinese companies in the U.S. They added that they will also press ahead with export controls for goods shipped to China.
This might be happening because the President is meeting with Kim Jong Un, the North Korean leader, on June 12th. China is a key diplomatic backer for North Korea. Washington might be acting tougher because they see Beijing trying to limit navigational freedom in the South China Sea.
Trade Problems
Earlier this month, both sides agreed in Washington to decrease China’s $375 billion surpluses. Wilbur Ross will try to convince China to agree to buy more U.S. goods on his June 2-4 visit to Beijing.
