Economy

China will not "surrender" to USA demands in trade talks

China will not

"We share the concerns of the USA regarding China's trade and investment practices, but continuing along the path of tariff escalation is extremely risky", the European chamber president, Mats Harborn, said in a statement. In China, the yuan jumped and stocks rose.

The two governments have imposed 25 percent tariffs on $50 billion of each other's goods.

Larry Kudlow, who heads the White House Economic Council, told Fox Business Network that U.S. Treasury Secretary Steven Mnuchin had sent an invitation to senior Chinese officials, but he declined to provide further details.

If the United States imposed new levies on Chinese imports then Beijing "will not hesitate to take countermeasures against USA tariffs to safeguard China's interests", it added.

A series of companies want President Trump to know that tariffs are hurting US industries.

Zheng expressed support for Trump's wider aim of levelling the playing field between the US and China, and addressing "long-standing inequities".

Americans don't notice the 25 percent duty on light trucks, known as the "chicken tax", that has been on the books since 1964, when President Johnson levied it in retaliation for France and West Germany's tariff on USA chicken. "AmCham China and AmCham Shanghai urge both governments to return to the negotiating table".

"Chinese officials said they have grown wary of the Trump administration's unpredictable decision-making process and may be hesitant to accept without a clear sign US negotiators have authority to speak for the president", the original report said.

More news: Richarlison double on Brazil debut

More than half of USA firms are already feeling Beijing's wrath from non-tariff measures like heightened regulatory scrutiny, more inspections and slower customs clearance, according to the survey.

About 30 per cent said they were adjusting supply chains by seeking to source components and/or assembly outside the USA, and about the same number were seeking to source components and/or assembly outside China.

To avoid the tariffs, 30 percent of USA companies are looking at moving assembly out of the United States or China or finding new suppliers, the chambers said. They said almost one-third are thinking about canceling or postponing investment decisions.

"This survey affirms our concerns: tariffs are already negatively impacting US companies and the imposition of a proposed $200 billion tranche will bring a lot more pain", said AmCham Shanghai chairman Eric Zheng.

China is running out of American imports for retaliation due to their lopsided trade balance, but threatened unspecified "comprehensive measures" in June.

The two chambers of commerce on Thursday urged the United States and Chinese governments to resume negotiations.

The European chamber said about 5 percent of companies reported shifting production out of the United States and about 7 percent were moving out of China.

The White House has sought to pressure Beijing to reduce its trade surplus with America and protect intellectual property rights of USA companies, which it says are abused in China.