Chinese Ambassador to US Promises Section 301 Tariff Retaliation of Similar Scope

China will respond proportionately to any U.S. tariffs implemented as part of the Section 301 investigation, Chinese Ambassador Cui Tiankai said while speaking on an English-language Chinese television station on April 2. If the U.S. does add tariffs as a result of that investigation as expected, "we will certainly take countermeasures of the same proportion, and of the same scale, same intensity," he said. The White House said the total value of goods subject to levies will be $50 billion (see 1803220034). Cui emphasized that the latest tariffs on U.S. imports (see 1804020009) were solely in response to the tariffs on steel and aluminum.

Cui also defended Made in China 2025, one of the elements of Chinese industrial policy that the U.S. says is in violation of World Trade Organization rules. Made in China 2025 depends on technology transfer, investment in high-tech companies abroad to access their technology, and other policies that the U.S. says need countering through the 301 process.

"I think we are now living in a world that is witnessing very fast and rapid development of technology. It's the responsibility of all the governments to make sure that all people will benefit from technological progress," Cui said. "It's not a matter of who will get supremacy?" Cui also said China is happy to look at specific examples of intellectual property theft, if the U.S. wishes to share them. "China has been strengthening its efforts, and strengthening its legal system on this particular issue and we are making good progress. We are ready for international cooperation in this area."