Trump blasts 'stupid' trade practices with China

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While Graham hopes Chinese President Xi Jinping will change his trade policy in response to USA tariffs, he predicted that will happen only if "it hurts his economy to the point where he has to change his behavior".

More broadly, Xi repeated official promises to expand imports and to narrow China's trade surplus, which reached $423 billion past year - about two-thirds of that with the United States.

The new White House economic adviser, Larry Kudlow, said Sunday that a "coalition of the willing" - including Canada, much of Europe and Australia - was being formed to pressure China and that the US would demand that the World Trade Organization, an arbiter of trade disputes, be stricter on Beijing. Then, in an effort to punish China over its alleged theft of intellectual property, Trump on Tuesday proposed a 25 percent tariff on $50 billion of imported Chinese goods. "Great future for both countries!" the president tweeted.

Xi promised to cut auto import taxes, open China's markets further and improve conditions for foreign companies in a speech Tuesday that called for global cooperation against a backdrop of a spiraling dispute with Washington over trade and technology.

Of the other products on China's tariff list, he predicted that duties on USA chemicals will hurt Chinese businesses most, as they rely on imports for many raw materials, he said.

The U.S. list of affected Chinese products had included high-tech items in areas like aerospace and pharmaceuticals, while China had proposed new levies on U.S. products like soybeans and whiskey.

"I think it's going to generate very positive results which will grow" the economies of the U.S., China, and the world, Larry Kudlow, Trump's top economic adviser, said on CNN's "State of the Union".

U.S. Treasury Secretary Steven Mnuchin told CBS News that the threat of higher tariffs posed the risk of a trade war but that he does not expect one to materialize.

"There is no way for us to address China without absorbing some pain here", the SC senator told ABC News Chief Global Affairs Correspondent and "This Week" co-anchor Martha Raddatz.

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During an eagerly awaited speech at a development conference on the tropical Chinese island of Hainan, Xi billed the planned cut in vehicle tariffs and a series of other measures as "a new phase of opening up".

He predicted that China will likely end up buying soybeans from the United States anyways-via other countries that will import USA soybeans to meet China's high demand.

"Xi threw the ball into the US court but it appears China is laying the groundwork to achieve an agreement with the U.S". The president has long talked up his friendship with Xi, whom he has praised for consolidating power in China despite its limits on democratic reforms.

"Xi has succeeded in batting the ball back into the USA court, so we now watch and wait for a response", said IG analyst Christ Beauchamp.

However, even as Trump was talking tough at the White House, his administration moved to soften the sting of the metal tariffs, telling Congress on Thursday that the European Union, Australia, South Korea and other nations would join Canada and Mexico in gaining an initial exemption.

"Chinese cheating has cost American jobs and I applaud the administration for standing firm in its commitment to crack down on China's continued violations", said Sen.

"The United States hasn't had a Trade Surplus with China in 40 years". And he said that although the USA hoped to avoid taking action, Trump "was not bluffing".

"South Korea should maintain a strong alliance and coordination with the United States to make sure the U.S. stays in the game without being alienated", professor Kim said.

In recent weeks relations between China and the United States have been overshadowed by the tensions in the sphere of trade. They must end unfair trade, take down barriers and charge only Reciprocal Tariffs.