China warns US not to open Pandora's Box

China has warned the US not to spark a flurry of protectionist practices and has pointed to US goods it could target in a deepening trade dispute.

China has warned the United States not to open Pandora's Box and spark a flurry of protectionist practices across the globe, even as Beijing pointed to US goods it could target in a deepening trade dispute.

China could target a broad range of US businesses from agriculture to aircraft, cars, semiconductors and even services if the trade conflict escalates, the official China Daily newspaper said in an editorial on Thursday.

President Donald Trump's move last week to slap up to $US60 billion ($A84 billion) in tariffs on some Chinese imports has since provoked a warning from Beijing that it could retaliate with duties of up to $US3 billion on US imports.

China's biggest US imports are aircraft and related equipment, soybeans and vehicles, with the total bill about $US40 billion last year.

"The malicious practices of the United States are like opening Pandora's Box, and there is a danger of triggering a chain reaction that will spread the virus of trade protectionism across the globe," a commerce ministry spokesman said.

The official line from China continues to be stern even as Beijing says it is all for dialogue and negotiations.

The Financial Times reported only on Monday that China had offered to buy more US micro-chips and move more quickly to finalise rules allowing foreign firms to take majority stakes in Chinese securities firms, citing people briefed on the negotiations.

Chinese customs data shows the US accounted for just $US2.6 billion, or 1 per cent, of China's total semiconductor imports last year by value, with suppliers in South Korea, Taiwan and Japan commanding a bigger share.

But a source in the US semiconductor industry said US companies have slightly more than 50 per cent of China's market for chips, though export data doesn't reflect that because much of the product is sent offshore for low value added processing.

China has long said it would like to import more US high-tech goods, including high-end chips, but has been stymied by US export controls set on national security grounds.

China's commerce ministry said on Thursday the US approach to trade could trigger a domino effect and US trade protectionism will only hurt US consumers.

While China hopes the US will resolve trade conflicts with China through dialogue, it will take all possible steps to protect its interests, ministry spokesman Gao Feng told a regular briefing in Beijing.


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Source: AAP


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