BEIJING (AFP) – China announced Tuesday that it would cut tariffs on auto imports from July 1, the latest sign of a thaw in trade frictions with the United States.
Beijing has announced a flurry of liberalisations and reforms since coming under fire from the Trump administration and some European politicians for its protectionist policies.
The planned reduction in import duties from 25 percent to 15 percent is a boon for international carmakers keen to grow sales in the world’s largest auto market but may fall short of fulfilling US President Donald Trump’s expectations that Beijing match US tariffs of 2.5 percent.
Demands reportedly put to Beijing by Washington at the start of trade talks called on China to lower all tariffs to at least match those of the US.
Mr Trump has been following the issue closely and on Monday tweeted, “On China, Barriers and Tariffs to come down for first time.”
The announcement in Beijing came days after Vice Premier Liu He and US Treasury Secretary Steve Mnuchin led negotiations in Washington which ended with an agreement to pull back from the brink of a trade war.
The two sides agreed to refrain from imposing tariffs threatened on billions of dollars’ worth of goods that would have dented US-China trade.
But even as Mr Trump has talked up the agreement, writing on Twitter that China “will purchase from our Great American Farmers practically as much as our Farmers can produce,” other members of his administration have split on the detente and said tariffs were still on the table.
“Real structural change is necessary,” US Trade Representative Robert Lighthizer said of China’s economy in a widely cited statement released Sunday.
“Nothing less than the future of tens of millions of American jobs is at stake.”
In Beijing China’s foreign ministry spokesman Lu Kang said yesterday the US would send a high-level delegation to China to hold “detailed conversations” at an unspecified date.
In addition, Foreign Minister Wang Yi plans to travel to Washington today to “exchange views on bilateral relations and issues of common interest”.
