Raising tariffs will not balance US books because the real problem is its excessive consumption and low saving rate, Liu noted. “The trade imbalance with China is further aggravated by the long-term US restriction on high-tech exports to China.”
“The Trump administration is putting domestic law above international law and forcing America’s trading partners to make concessions,” he said, “It is tantamount to returning the international trade order to the ‘law of the jungle’. In the face of this, China had to act.”
“China has not, however, closed the door to negotiations,” he said. “On the contrary, we will continue to deepen reform and open up on all fronts with a view to building closer trade and economic partnerships with the world.”
It is China’s consistent position to address trade disputes through negotiations and consultations, he said. “China stands ready to carry out constructive negotiations with the United States on the basis of mutual respect, equality and mutual benefit, as long as the United States abandons unilateralism and trade protectionism.”
