China balks at US accusation of 'unfair' trade practices

Beijing has rejected fresh accusations of “unfair” trade practices from Washington just days before Presidents Trump and Xi are set to meet to discuss their ongoing trade disputes.

The two leaders are to hold talks at a G20 summit in Argentina at the end of the month, with onlookers hoping they will defuse a trade war that has played havoc with markets around the world, but a report issued by the Trump administration this week criticised China’s intellectual property and technology transfer policies.

US Trade Representative (USTR) Robert Lighthizer said in a statement on Tuesday that China had failed to change its “unfair, unreasonable, and market-distorting practices” since the imposition of tariffs by the US.

Gao Feng, a spokesman for the Chinese commerce ministry, said: “The U.S side made new groundless accusations against the Chinese side, and China finds it totally unacceptable.”

The spokesman added that he hoped the US would stop damaging economic relations with words and behaviour by adopting a constructive attitude.

The tit-for-tat dispute has seen US tariffs against China balloon from an initial $50bn to $250bn, with Beijing working to keep pace.

The Trump administration has also proposed stepping up scrutiny on technology exports in 14 key areas such as artificial intelligence and microprocessors, a move that is seen as directly targeting and inconveniencing China.

“China will pay close attention to the relevant US legislation and take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises as appropriate,” said Gao.

The news also comes after US Vice-President Mike Pence said at the Asian economic summit that he would be prepared to "more than double" the tariffs imposed on Chinese goods.