‘Arrogant demands’ by US ‘invade’ China’s economic sovereignty, state news agency says
- Attempts to restrict the development of state-owned enterprises seen as ‘forcing China to change its development path’
- Xinhua says negotiations are now touching China’s fundamental economic system
The United States has called on China to curb the development of its state-owned enterprises (SOEs), a demand that China sees as an “invasion” on its economic sovereignty, Chinese state news agency Xinhua said on Saturday.
Trade tensions between Washington and Beijing escalated sharply earlier this month after the Trump administration accused China of having “reneged” on its previous promises to make structural changes to its economic practices.
Washington later slapped additional tariffs of up to 25 per cent on US$200 billion of Chinese goods, prompting Beijing to retaliate.
As trade talks stalled, both sides have appeared to be digging in. China has denied it had walked back on its promises but reiterated it would not make concessions to “matters of principles” to defend its core interests, although no full details were given.
“At the negotiating table, the US government presented a number of arrogant demands to China, including restricting the development of state-owned enterprises,” Xinhua said in a commentary.