EU Urges U.S., Russia, China To Avoid Costly Trade Wars

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Washington imposed 25% tariffs on 34 billion dollars' worth (£25 billion) of Chinese goods in response to complaints that Beijing steals or pressures companies to hand over technology.

In total, the United States has threatened to place tariffs on more than $500bn in Chinese goods to the U.S., an amount that Beijing can not reciprocate.

China has sworn to retaliate at each step.

The US today launched separate disputes at the WTO against its trading partners, including China and the European Union, challenging their hefty retaliatory tariffs against President Donald Trump's duties on steel and aluminium.

The Trump administration has adopted a confrontational path with some of its major trading partners including India as it threatens to take all necessary steps to protect United States interests. "They need to slow financial deleveraging slightly and to turn their focus more on growth-supportive measures, for example increasing liquidity through (bank reserve requirement) cuts", said Iris Pang, Greater China Economist at ING in Hong Kong. "It knows how to open up".

Data on Friday showed that China's exports grew at a solid pace last month, although analysts have suggested that front-loading of shipments ahead of tariffs taking effect might have boosted the figures.

Monday's move "indicates that we value the role of the WTO rules", said Tu. On Sina Weibo, a platform similar to Twitter, a user going by "Wei zhi yan" noted that when Chinese citizens suffer from the failed one-child policy or from exorbitant prices on medicines, the Chinese regime does not talk about "overcoming troubles together"-only when "foreign governments threaten to do something".

The China-EU meeting is expected to produce a modest communique affirming the commitment of both sides to the multilateral trading system. Leaders failed to find sufficient consensus for such a joint statement after meetings in 2016 and 2017.

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Li said the two sides agreed to exchange market offers for the first time, which could reinvigorate long-running investment treaty talks.

China needs to advance investment treaty negotiations with the European Union and both should share the objective of concluding agreements at an early date, Premier Li said.

The EU's retaliatory tariffs are effective in two tiers.

The World Trade Organisation should be reformed rather then destroyed, he said, adding, "There is still time to prevent conflict and chaos".

The Trump administration is still considering the auto tariffs and, later this week, the U.S. Department of Commerce will hold hearings on whether it can impose them over national security concerns, much like it did for steel and aluminum.

The Trump administration also called countermeasures aimed at the Canada and other trading partners "completely without justification under global rules".

A slowdown in Chinese economic growth weighed on global stock markets Monday as investors kept a close watch on a summit U.S. President Donald Trump with Russian President Vladimir Putin.

The Trump administration is hitting back at a number of countries for what it considers unjustified retaliatory tariffs that were imposed as a response to the steel and aluminum duties the US applied on its closest allies in the name of national security.