China’s Commerce Ministry urges US not to add new trade measures

China asked the US to refrain from introducing any new trade measures amid reports that the Biden administration is weighing a new investigation into Chinese subsidies.

China “urges the US not to introduce new trade measures” as China always opposes protectionist trade practices, Commerce Ministry Spokeswoman Shu Jueting said Thursday in Beijing. “The US accusations against China on industrial subsidies are completely inconsistent with the facts,” she said, adding that China’s subsidy levels and methods are in line with World Trade Organization rules.

The Biden administration is close to announce a rollback of some tariffs on Chinese consumer goods, according to people familiar with the deliberations. While the administration is looking at that as a way to lower inflation on consumers, it is also weighing a new investigation looking at any damage Chinese subsidies have caused to the US economy.

Shu welcomed the news of the potential removal of tariffs on Chinese goods, saying a complete rollback will have a “substantial effect” on reducing the level of inflation in the US. She called on the US to meet China halfway and make joint efforts to maintain the stability of global trade and industrial supply chains.

When asked about the next step in trade talks with the US, she said the ministry will release relevant information in a timely manner if there is further news.

Earlier this week Vice Premier Liu He held “pragmatic, candid” and “constructive” talks with US Treasury Secretary Janet Yellen. According to the Chinese statement afterwards, the two sides discussed economic policy and stabilizing global supply chains, and agreed that it’s significant for the US and China to strengthen communication and coordination in those areas for the benefit of both countries and the rest of the world.

The Chinese side also raised issues of concern including the lifting of tariffs and sanctions and the fair treatment of Chinese enterprises, the statement said.