China Holds US ‘Fully Responsible’ for Trade War, Blames Trump Tariffs on ‘Domestic Politics’

The Chinese Embassy in Washington released a 1,300-word statement Thursday accusing U.S. Trade Representative Robert Lighthizer of “slander” for alleging that China uses unfair trade practices to gain advantages over its U.S. trade competitors. In announcing a new round of proposed 10 percent Trade Act Section 301 tariffs Tuesday on $200 billion worth of Chinese goods (see 1807110034), Lighthizer called China’s trade practices “an existential threat to America’s most critical comparative advantage and the future of our economy.” The retaliatory actions China took in response to the tariffs that took effect July 6 were "without any international legal basis or justification," said Lighthizer. The Chinese shot back, calling Lighthizer’s statement “a distortion of facts” and his accusations “groundless.” Any “underlying problems in the American economy and society are purely caused by domestic, structural reasons in the US,” said the embassy. China since February “engaged in four rounds of high-level economic talks with the US,” and reached “important consensus” on “strengthening trade and economic cooperation and avoiding a trade war,” it said. “But due to domestic politics, the US has gone back on its words, brazenly abandoned the bilateral consensus, and insisted on fighting a trade war with China. China has done its utmost to prevent the escalation of trade frictions. The United States is fully responsible for the current situation.” The tariffs the Trump administration implemented or proposed are “typical unilateralism, protectionism and trade bullying,” and are a “clear violation” of the basic World Trade Organization “principle of most-favored-nation treatment as well as the basic spirit and principles of international law,” said the embassy. That China was “forced to take” retaliatory “counteractions” against the tariffs was “an inevitable choice to defend national interest and global interest, and is perfectly rightful, reasonable and lawful," it said. Lighthizer's office didn't comment.