China National Radio (CNR):

I noticed that Minister Zhu sill used the term "friction" to describe the current trade problem between China and the United States. But we know that China announced to impose tariffs on US$3 billion worth of US imports on April 2, and the Office of the U.S. Trade Representative (USTR) announced tariffs on about US$50 billion worth of Chinese goods on April 3 (EST), leading China to then unveil a list of products worth about US$50 billion imported from the U.S. that will be subject to higher tariffs today. With all those measures on both sides, does it mean that a trade war has already started between the two countries? Is it still possible to solve the problem through negotiation? Are the channels for negotiation still open? What measures do you think will be taken by both sides?

Wang Shouwen:

You have followed the trade frictions between China and the United States in great detail. Thank you for your interests in the trade issues between China and the U.S. On April 2, China announced tariffs of 15 and 25 percent on 128 items of U.S. products. This was in response to the move by the U.S. to impose import restrictions on Chinese steel and aluminum products. The measures taken by the U.S. under Section 232, citing national security concerns, are untenable and unfounded. Moreover, the restrictive measures target only a few countries while many other countries are excluded. It can be seen, therefore, that the U.S. move is not based on security  concerns and is discriminatory. This is a flagrant violation of the multilateral trading system and hurts China's interests, so China has already filed a request for consultations on the Section 232 investigation at the WTO. Meanwhile, in order to safeguard our legitimate interests, we also adopted the US$3 billion worth of countermeasures that you just mentioned on April 2. We have noticed that, in response to the Section 232 measures, the EU and other members of the WTO are also considering taking measures.

The United States announced on April 3 a proposed list of products imported from China worth US$50 billion that will be subject to additional tariffs under Section 301. We believe the move fundamentally violates the international obligations of the United States and has no factual basis at all. The move has impaired China's interests, threatened China's economic security and jeopardized the recovery and stability of the global economy. Therefore, according to international law and the Article Seven of the foreign trade law of China, if any country or region adopts discriminatory measures or other similar measures to ban or limit China in trade, we must respond with corresponding measures. So, as just mentioned by Mr. Zhu, we released our list worth nearly US$50 billion. I have to say, we refrained but were forced to make such a move. 

You also mentioned the question of a trade war. China has no intention for a "trade war," because there is no winner in a "trade war." However, we are not afraid of it. If there is someone who insists on a "trade war, " we will fight to the end. You asked if there was a channel for dialogue and communication. Our stance has always been that the door is open for resolving the problems through negotiation, dialogue and communication. If the U.S. side has the intention to hold talks, we will certainly agree to negotiate and resolve the differences on the basis of equal negotiation and mutual respect. To make it simple, if somebody wants to have a "trade war," we will not retreat, if they want to talk, the door is always open. Thank you.

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