USA VS CHINA: New trade war warning as US hits out at China's 'unfair' work practices
DONALD Trump’s US administration has accused China of “unfair competitive practices” as fears of an all-out global trade war intensity.
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US trade ambassador Dennis Shea took aim at Beijing, claiming it was harming foreign companies and workers. The communist regime is violating World Trade Organisation (WTO) rules, the White House believes. Washington has vowed to lead efforts to reform the system. It comes after Mr Trump slapped tariffs on £198 billion ($250 billion) worth of Chinese goods.
Mr Shea said the WTO dispute agreement settlement system had “strayed far from the system agreed to by members”.
He said: “The WTO is not well equipped to handle the fundamental challenge posed by China, which continues to embrace a state-led, mercantilist approach to the economy and trade.”
A dispute over steel and automobiles has brought China and the US to the brink of an all-out trade war.
Mr Trump has vowed to slap more massive tariffs on China unless it agrees to a “real deal” over trade.
The WTO is not well equipped to handle the fundamental challenge posed by China, which continues to embrace a state-led, mercantilist approach to the economy and trade
But Mr Shea rejected claims Mr Trump has adopted a “unilateralist and protectionist” trade policy.
The US economy is "one of the most open and competitive economies in the world", with among the lowest tariffs globally, according to Mr Shea.
China hit back on Monday, saying Mr Trump trade policies on items from steel to intellectual property were "bringing back to life the ghost of unilateralism".
Beijing ambassador Zhang Xiangchen, told the WTO the US should work on WTO reform "through consultations on equal grounds".
This month, Trump tweeted: “We are either going to have a real deal with China, or no deal at all.
“We will be charging major Tariffs against Chinese product being shipped into the United States.
“Ultimately I believe we will be making a deal, either now or into the future.
“China does not want tariffs!”
Mr Shea also defended a US "Section 301" investigation that found Chinese practices on technology transfer, intellectual property and innovation were discriminatory.
He said: "The United States is committed to working with like-minded members to address our concerns with the functioning of the WTO.
“Reforms are necessary for the continued viability of the institution."