China's State Council Information Office issues a white paper on the Sino-US trade dispute. Photo: Xinhua

China has accused the US of breaking promises in trade talks and has urged the world’s largest economy to cooperate and jointly solve trade disputes.

A white paper released by China’s State Council Information Office on Sunday said: “Cooperation is the only correct choice for China and the US and win-win is the only path to a better future.

“As to where the China-US economic and trade consultations are heading, China is looking forward, not backward. Disputes and conflicts on the trade and economic front, at the end of the day, need to be solved through dialogue and consultation,” said the white paper, titled China’s Position on the China-US Economic and Trade Consultations, adding that striking a mutually beneficial agreement serves the interests of China and the US and meets the expectations of the world.

The document said that the US government bears responsibility for the setback in the trade negotiations with China.

“It is common practice for both sides to make new proposals for adjustments to the text and language in ongoing consultations. In the previous more than ten rounds of negotiations, the US administration kept changing its demands. It is reckless to accuse China of ‘backtracking’ while the talks are still under way,” said the white paper.

Beijing said it demonstrated the greatest sincerity and a strong sense of responsibility for resolving trade disputes through dialogue by sending a senior delegation to the US, as agreed, for the 11th round of economic and trade consultation from May 9 to 10.

China expressed strong opposition to the unilateral tariff increase by the US and stated its firm position that it would have to take necessary countermeasures.

In early May, US President Donald Trump said in a Twitter post that the US would increase tariffs on US$200 billion worth of Chinese products to 25% from 10% on May 10. Citing US officials, western media reports said the trade talks fell apart as China made significant changes in the the detailed terms of the written agreement that was supposed to be signed by leaders from both sides in May or June.

Chinese Vice Premier Liu He led the delegation to the US in May. The meeting failed to alter Trump’s decision to raise tariffs on Chinese goods on May 10. On Saturday, China raised tariffs on US imports worth $60 billion next month.

Last month, the US Department of Commerce added Huawei Technologies onto its Entity List, barring US hardware and software companies from selling their products to the Shenzhen-based company on national security grounds. It then granted a 90-day licence to Huawei to purchase US goods and services until August 19. Analysts said Huawei will have to reduce production if its smartphones cannot use US chips and Google’s Android system.

On Sunday, Beijing rejected the idea that threats of a trade war and continuous tariff hikes can ever help resolve trade and economic issues.

Guided by a spirit of mutual respect, equality and mutual benefit, the two countries should push forward with consultations based on good faith and credibility in a bid to address issues, narrow differences, expand common interests, and jointly safeguard global economic stability and development, the document said.

China said it has been consistent and clear on its position, that it hopes to resolve issues through dialogue rather than tariff measures. “However, China will not bow under pressure and will rise to any challenge coming its way. China is open to negotiation, but will also fight to the end if needed,” it added.

Leaders of China and the US will meet at the G20 Summit in Osaka, Japan, on June 28 and 29, Dai Xianglong, former president of the People’s Bank of China, said in Beijing on May 31. However, Beijing was not optimistic about achieving a breakthrough in the Sino-US trade disputes, Dai said.

US Vice-President Mike Pence has said he expected a Xi-Trump meeting to take place during the G20 Summit.

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