China has cautioned the United States on Monday not to adopt “discriminatory actions” against its companies, following reports that Washington intends to prohibit the sale of automobiles incorporating Chinese and Russian technology.
Bloomberg and other media outlets claimed on Sunday, citing sources, that the United States was considering new laws that would prohibit Chinese-made hardware and software from being used in its vehicles.
When asked about the reports, Lin Jian, a foreign ministry spokeswoman, said China urged “the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.
“China opposes the US’s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products,” Lin said.
“China will resolutely safeguard its legitimate rights and interests,” he added.
The rules if approved will be the most recent development in the US and China’s brewing trade spat. Washington announced significant tariff increases on Chinese imports of semiconductors and electric vehicles in May.
According to the White House, the tariff hikes target crucial industries like electric vehicles (EVs), batteries, essential minerals, and medical supplies. They affect Chinese imports valued at $18 billion. The tariff rate on semiconductors will increase from 25% to 50% by the next year, while the tariff rate on electric vehicles is scheduled to quadruple to 100% this year.
Those measures were finalized this month, ahead of the November presidential election, in which both Democrats and Republicans desire to take a firm line on China as competition between the two countries heats up.
The tariff increases on the $18 billion in commodities came following a review of levies imposed by then-President Donald Trump, which affected approximately $300 billion in Chinese imports. Aside from tariff increases, including those on solar cells, the US Trade Representative’s office indicated that a 50% charge on semiconductors, a significant increase from before, would begin in 2025.
US President Joe Biden has accused Beijing of “cheating” rather than competing on trade.
Written by Jennifer Amarachi
