China will not dump its goods in other countries due to its trade and tariff war with the US, Beijing’s ambassador to India, Xu Feihong, wrote in an article on Tuesday, trying to allay fears of cheap Chinese goods flooding other markets.
In tit-for-tat tariffs between the world’s two biggest economies, China and the US have hiked levies on each other’s goods to over 100 per cent since US President Donald Trump took office in January, rattling global markets.
The trade war has stoked fears that Chinese firms may divert goods to other markets, hitting competitiveness of exports from other countries.
India, the world’s second-biggest producer of crude steel, last week imposed a 12 per cent temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.
In an editorial for the Indian Express newspaper, titled “Stand up to Washington’s bullying” and published on Tuesday, Chinese Ambassador Xu said China was focusing on expanding its domestic demand and boost consumption.
“China strictly complies with WTO subsidy disciplines and market rules,” Xu wrote. “We will not engage in market dumping or cutthroat competition, nor will we disrupt other countries’ industries and economic development."
India’s trade and foreign ministries did not immediately respond to a request for comment.
A flood of Chinese steel in recent years has pushed some Indian mills to scale down operations and mull job cuts, and India is one of a number of countries to have contemplated action to stem imports to protect local industry.
Interim deal
India and the US are exploring opportunities for an interim trade arrangement in goods to secure “early mutual wins” ahead of finalising the first phase of the proposed bilateral trade agreement by the fall of this year. The commerce ministry said on Tuesday that both countries have initiated sectoral-level talks and more engagements are planned from May end.
To give impetus to the talks, India’s chief negotiator Rajesh Agrawal, additional secretary in the department of commerce, and Assistant US Trade Representative for South and Central Asia, Brendan Lynch, held three-day talks last week in Washington.
An official said that an interim agreement about trade in goods could take place as part of early mutual wins in case both sides agree.
“Initially, we are focusing on goods. The non-tariff barriers being flagged by the Indian side included in sectors such as marine,” the official said.