International

China warns U.S. on tariffs

BEIJING: China on Tuesday warned of reprisals if the U.S. Congress adopts a bill on China's foreign exchange rate which raises U.S. tariffs on imports from China.

``China has always held the view that China-U.S. trade relations must reflect the interests of both sides and therefore require efforts from both sides,'' Foreign Ministry spokesman Qin Gang told a press conference. But the bill to be passed by the U.S. Congress could lead to higher tariffs on imports from China, said Mr. Qin.

``If this happens, relevant Chinese authorities will have to respond in kind,'' he said.

The trade volume between China and the U.S. reached $263 billion in 2006. Some U.S. lawmakers blame the U.S. trade deficit with China on yuan's low exchange rate.

Mr. Qin urged the U.S. not to politicise the trade issue. ``The two sides should resolve the bilateral trade disputes on the basis of mutual respect and equal negotiation, taking each other's concerns into consideration.'' — Xinhua

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