Fresh import tariff cuts announced by China amid increasing trade war

BEIJING: The government will cut import tariffs for products including machinery, electrical equipment and textile products beginning on November 1, as the country braces for an escalating trade war with the United States said China's State Cabinet on Wednesday.

The cuts are expected to lower costs for consumers and companies by about 60 billion yuan this year, the state cabinet said in a meeting chaired by Premier Li Keqiang, according to the state media.

The overall tariff level will be reduced to 7.5 percent in 2018 from 9.8 percent in 2017 as a result, the state cabinet said.

Earlier on Tuesday, China's deputy trade negotiator acknowledged the challenge in resuming negotiations with the US, saying: "How could you negotiate with someone when he puts a knife on your neck?"

Wang Shouwen made the remarks at a press conference in Beijing aimed at highlighting a newly issued government policy paper on bilateral trade frictions, in which China portrays itself as a victim of US protectionism and bullying.

The paper was released Monday shortly after US President Donald Trump slapped 10% tariffs on $200 billion worth of

Chinese imports. China has retaliated with 5-10% tariffs on $60 billion worth of American goods.

Wang Shouwen's comments follow those made by Chinese State Councilor and Foreign Minister Wang Yi, the country's top diplomat, who on Monday warned that confrontation between China and the United States would only mean both sides lose.

Wang Yi, who is attending the United Nations General Assembly, met with a group of US business leaders in New York, hours after the US moved to implement its latest round of tariffs. He told the representatives that "certain US forces have been making groundless accusations against China on trade and security, generating confrontational sentiments and poisoning the atmosphere of bilateral ties," according to a statement released Tuesday by the foreign ministry.

Just a day earlier, US Secretary of State Mike Pompeo said on the "Fox News Sunday" television program that "we are going to win it" when asked about the trade war, which Trump launched in July to punish China for what he considers unfair trade practices.