China's Wang says response to US trade measures 'justified'

China's Wang says response to US trade measures 'justified'

Beijing threatened Friday to bring in the levies on products ranging from beef to condoms, after US President Donald Trump's administration upped the ante in its plans for additional tariffs on Chinese goods worth US$200 billion.

Washington suggested the rate on the proposed extra tariffs could be increased from 10 to 25 per cent.

The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries.

Washington claims that China's export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.

Speaking on the sidelines of a a Southeast Asian security conference also attended by the US Secretary of State Mike Pompeo in Singapore, Foreign Minister Wang Yi said China's threat of retaliatory tariffs was "fully justified and necessary".

"These are measures taken out of the consideration for upholding the interests of the Chinese people," he said, speaking through a translator.

He said the move was also aimed at upholding the "global free trade regime" that was underpinned by the World Trade Organization.

Wang also hit back at comments by top White House economic advisor Larry Kudlow, who ridiculed China's tariff threat as "weak" and said the world's second-largest economy was in significant "trouble".

"As to whether China's economy is doing well or not, I think it is all too clear to the whole international community," Wang said, adding that China contributed a huge amount to global economic growth.

"I don't see why he would come to the conclusion that China's economy is not doing well."

In early July, the US imposed 25 per cent tariffs on US$34 billion of Chinese goods, with another US$16 billion to be targeted in coming weeks, sparking retaliatory measures from China.

Days later, Washington unveiled a list of another US$200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10 per cent import duties.

But Trump raised the stakes this week with his threat to lift the tariff rate.

China has said new duties will be applied only if Washington pulls the trigger on its new tariffs.

The Republican president has been keen to show he is tough on trade ahead of tricky congressional elections in November - but there are growing signs of concern in the White House that the dispute could affect Trump's political base.

US "BIGGEST FORCE BEHIND MILITARISATION": WANG

Wang also said on the sidelines of the forum that the United States was putting military pressure on countries in the region, including China.

Wang told reporters at the forum that China welcomed, and was willing to work with, the United States to help with faster development and better security in the region.

He added, however, that the United States had been sending "massive strategic weaponry" into the South China Sea and the region as a show of military might that puts pressure on China and other regional countries.

"That is the biggest force behind militarisation in this region," he said.