US commerce secretary arrives in Beijing

Despite Washington reviving tensions with China over trade tariff hikes, the US commerce secretary has arrived in Beijing for talks.

US Commerce Secretary Wilbur Ross has arrived in Beijing for talks on China's promise to buy more American goods after Washington revived tensions by renewing its threat of tariff hikes on Chinese high-tech exports.

The talks focus on adding details to China's May 19 promise to narrow its politically volatile surplus in trade in goods with the United States, which reached a record $US375.2 billion ($A495.6 billion) last year.

President Donald Trump threw the status of the talks into doubt this week by renewing a threat to hike tariffs on $US50 billion ($A66 billion) of Chinese goods over complaints Beijing steals or pressures foreign companies to hand over technology.

Private sector analysts say that while Beijing is willing to compromise on its trade surplus, it will resist changes that might threaten plans to transform China into a global technology competitor.

China has promised to "significantly increase" purchases of farm goods, energy and other products and services. Still, Beijing resisted pressure to commit to a specific target of narrowing its annual surplus with the United States by $US200 billion ($A264 billion).

Following Beijing's announcement, US Treasury Secretary Steven Mnuchin said the dispute was "on hold." But the truce appeared to end with this week's announcement Washington was going ahead with tariff hikes on technology goods and also would impose curbs on Chinese investment and purchases of US high-tech exports.

The move reflects growing American concern about China's status as a potential tech competitor and complaints Beijing improperly subsidises its fledgling industries and shields them from competition.

Trump also has threatened to raise tariffs on an additional $US100 billion ($A132 billion) of Chinese goods, but gave no indication this week whether that would go ahead.

Earlier, China responded with a threat to retaliate with higher duties on a $US50 billion ($A66 billion) list of American goods including soybeans, small aircraft, whiskey, electric vehicles and orange juice. It criticised Trump's move this week and said it reserved the right to retaliate but avoided repeating its earlier threat.

Trade analysts warned Ross's hand might be weakened by the Trump administration's decision Thursday to go ahead with tariffs on steel and aluminum imports from Canada, Europe and Mexico.

That might alienate allies who share complaints about Chinese technology policy and a flood of low-priced steel, aluminium and other exports they say are the result of improper subsidies and hurt foreign competitors.


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Source: AAP



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