A US threat to pull recognition of China's "developing nation" status at the World Trade Organisation is a pressure tactic ahead of this week's trade talks and is bound to fail, a commentary in state media said Monday.
The reaction followed a memo issued on Friday by President Donald Trump to US Trade Representative Robert Lighthizer.
It said the WTO, which operates a global system of trade rules and settles disputes, uses "an outdated dichotomy between developed and developing countries that has allowed some WTO members to gain unfair advantages."
Without "substantial progress" to reform WTO rules within 90 days, Washington will no longer treat as a developing country any WTO member "improperly declaring itself a developing country and inappropriately seeking the benefit of flexibilities in WTO rules and negotiations," said the statement, which focused mostly on China.
The memo came ahead of meetings in Shanghai on Tuesday and Wednesday between US and Chinese negotiators aiming to resolve a trade dispute that has led to tariffs on more than $360 billion worth of two-way trade involving the world's two largest economies.
Washington "obviously timed the memo to serve as a new bargaining chip" in the trade talks, the commentary from state-run Xinhua news agency said of the WTO threat.
"But the tactic of imposing pressure is nothing new to China and has never worked," it said.
Xinhua added that the US government's "latest hegemonic attempt" to coerce the WTO "is destined to hit a wall of opposition."
Developing country status in the WTO allows governments longer timelines for implementing free trade commitments, as well as the ability to protect some domestic industry and maintain subsidies.
But Jennifer Hillman, a former top US trade official who served at the WTO, has said the benefits granted to countries with the special status in most cases has long passed.
The Trump administration has long complained that WTO rules are unfair to the United States, and has nearly throttled significant WTO proceedings by refusing to name new members of the appellate body for the dispute settlement system, which will cease to function later this year.
Despite Trump's criticisms Washington has, in fact, won the majority of complaints it has filed with the WTO.
Xinhua's commentary said that "messing with" basic principles of the WTO "will beget nothing but failure."
"It will bring controversy and chaos, putting new obstacles in the way of WTO reforms," the commentary said.
Apple will face tariffs on components imported from China: Trump
Washington (AFP) July 26, 2019 –
President Donald Trump warned Friday that he would snub Apple's requests for tariff exemptions on device components imported from China, as he put pressure on the tech company to shift production to the United States.
"Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!" Trump said on Twitter.
Later, Trump told reporters that he wanted Apple to make the parts in the United States.
"When I heard they were going to build in China, I said when you send your product to the United States, we're going to tariff you."
Last week, Apple filed a request with the US trade representative, saying certain components for its $6,000 Mac Pro desktop computer could only be sourced from China and should be exempt from US tariffs.
The move comes amid frictions between the two economic powers, which are trying to restart failed negotiations on ending a trade war.
Trump has threatened to slap punitive tariffs on more goods to press Beijing to accept more imports and improve protections for US intellectual property.
Trump praised Apple CEO Tim Cook, saying he was someone "I have a lot of liking for and respect."
"We'll work it out. I think they'll announce they'll build a plant in Texas. If they do that, I'm starting to get very happy," he said.