The Chinese president said he wants to strike a deal with the US but is "not afraid" of a trade war. Fears that talks could collapse grew after US lawmakers passed a bill backing protesters in Hong Kong.
Image: picture-alliance/AP Photo/S. Walsh
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Chinese President Xi Jinping said on Friday that China holds a "positive attitude" toward trade talks with the US, but would "fight" to get the best terms.
"As we always said we don't want to start the trade war but we are not afraid," Xi said, responding to questions from representatives of the New Economy Forum, held at the Great Hall of the People in Beijing.
"When necessary we will fight back, but we have been working actively to try not to have a trade war," he said. He added that the nation was working towards a "phase one agreement on the basis of mutual respect and equality."
Xi's comments in Beijing were addressed to a group that included former US Secretary of State Henry Kissinger, former US Treasury Secretary Hank Paulson and former Australian Prime Minister Kevin Rudd.
Heading towards a 'phase one' deal
The two superpowers were hoping to agree a "phase one" deal, announced by Trump on October 11, but since then progress has again stalled with no written text being finalized.
Phase one was supposed to be a mini-agreement to resolve disagreements over intellectual property as well as agricultural trade.
Top negotiators from the US had a "constructive" conversation with their Chinese counterparts on Saturday over the preliminary deal.
However, on Wednesday Trump stated "I can tell you this. China would much rather make a trade deal than I would," and added, "I don't think they're stepping up to the level I want."
Tensions over Hong Kong
Tensions in Hong Kong have also cast a shadow over US-China relations in the past weeks with China cautioning the US to stay out of what it considers domestic affairs.
The bill specifies that the US would withdraw Hong Kong's special trading status if it did not retain sufficient autonomy from China.
Trump's tariffs and who they target
US President Donald Trump has repeatedly boasted that the tariffs he has imposed on trading partners are a financial windfall but, research shows it is Americans who bear the brunt of the impact. DW has an overview.
Image: picture-alliance/newscom/B. Greenblatt
Solar panels and washing machines
The first round of tariffs in 2018 were on all imported washing machines and solar panels — not just those from China. A study by economists from the Federal Reserve Bank of
New York, Columbia University, and Princeton University found that the burden of Trump's tariffs — including taxes on steel, aluminum, solar panels falls entirely on US consumers and businesses who buy imported products.
On Friday May 10, 2019 President Donald Trump imposed sanctions on $200 billion (€178 billion) worth of Chinese goods. The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys. China's Commerce Ministry said it "deeply regrets" the US decision.
Image: Getty Images/AFP/STR
Issues with the EU
In April 2019, the United States said it wanted to put tariffs on $11.2 billion worth of goods from the EU. The list includes helicopters and aircraft from Airbus as well as European exports like famous cheeses such as Stilton, Roquefort and Gouda, wines and oysters, ceramics, knives and pajamas.
Image: Imago/Ralph Peters
EU fights back
The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for US tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.
Image: Getty Images/AFP/M. Ralston
European automakers next?
May 17, 2019 is the deadline for President Trump to decide on imposing tariffs on vehicle imports from the EU. According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the EU total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.
Image: picture alliance/dpa
India not exempt
India, the world's biggest buyer of US almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and US iron and steel, in retaliation for US tariffs on Indian steel. Trump said last month that he would end preferential trade treatment for India, which would result in US tariffs on up to $5.6 billion of imports from India.
Image: Getty Images/AFP/R. Schmidt
North American neighbors in tariff spat
Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals. While to the north, Canada on July 1 imposed tariffs on $12.6 billion worth of U.S. goods, including steel, aluminum, coffee, ketchup and bourbon whiskey in retaliation for US tariffs on Canadian steel and aluminum.
