Communication breakdown risks escalating Sino-US trade row, say former officials
Washington’s tariffs on solar panel imports are the latest instance of its hardening stance towards Beijing. But the Davos summit is seen as offering a chance for the two sides to find common ground
China and the United States are facing a breakdown in communication as trade tensions escalate and Washington mulls taking increasingly harsh measures against Beijing, warn former US trade officials.
The US Trade Representative Office said late on Monday it would impose tariffs of up to 30 per cent on foreign solar panels, specifically blaming China for its “artificially low-priced” export of the technology. It also announced up to 50 per cent penalties and import quotas on foreign-made washing machines.
China’s Commerce Ministry hit back on Tuesday, expressing “strong discontent” over the steps and blamed the US for “abusing trade remedy measures” and “deteriorating [the] global trade situation”.
The World Economic Forum which started on Tuesday in Davos, however, might offer a chance for senior officials from both countries to discuss trade issues, observers said.
Liu He, the right-hand man of Chinese President Xi Jinping, is leading a delegation to the Swiss Alps resort, while US President Donald Trump and Commerce Secretary Wilbur Ross are scheduled to deliver speeches at the gathering this week.