China weighs breaks for tariff-hit companies in the US trade war
Beijing says it might use the extra revenue from its duties to compensate affected firms and encourage importers to find substitutes for American imports
China has said it might help companies find alternatives to the United States for key imports such as soybean and cars, as it looks to offset the effects of punitive trade war tariffs.
In a statement late on Monday, the Ministry of Commerce also said it was considering ways to use the extra revenue from its tariffs on US goods to mitigate the cost of the trade action bourne by business and workers.
Other possible remedial action included a faster roll-out of various economic and investment incentives and ongoing assessments of the trade war’s impact on a range of sectors, the ministry said, adding that it welcomed public consultation.
“In the process of determining which US products should be subject to retaliatory tariffs, the Chinese side has fully considered substitution for imported goods and the overall impact on trade and investment,” the ministry said.
The statement comes just three days after the administration of US President Donald Trump slapped 25 per cent tariffs on US$34 billion worth Chinese hi-tech goods. The tariffs were aimed at China’s “Made in China 2025” industrial policy that Washington says is linked to China’s alleged theft of US intellectual property.
While the US sees the policy as part of an aggressive Chinese strategy to become a hi-tech superpower and undermine American dominance in the area, Beijing views the tariffs as an existential threat to its development.