>> China woke up Wednesday to state media slamming Donald Trump's plans to push ahead on tariffs against Beijing in the billions of dollars. State-owned news agency Xinhua said China doesn't want a fight but isn't afraid of one either. It also accused Washington of looking to reignite a trade war.
On Tuesday, Trump warned the US could still make good on its tariff threat on $50 billion worth of imports from China. He also said America would press ahead on limiting investment by Chinese companies. US Officials say it's all part of a strategy to limit so called intellectual property theft by China.
The Chinese Commerce Ministry reacted swiftly saying in a statement, it saw Trump's move is contrary to recent consensus between both sides. Just two weeks ago, Treasury Secretary Steve Mnuchin said the US would push pause on the tariffs while trade talks continued. And as Reuters David Walter reports, even more recently, the two sides had agreed on some steps towards a solution.
>> It was just a week ago that we thought we had a deal with China on trade. Vice Premier Liu He had come to Washington and there were talks with Trump administration officials, and they came out with a laundry list of things that the Chinese were gonna buy from the United States.
However, there has been a dispute over the extent of the deficit reduction that would take place under that deal.>> Trump initially issued a sweeping tariff threat after accusing China of unfair trade practices and Chinese intellectual property theft in April. By mid-May, China had agreed to boost imports of US grain, along with oil and gas.
Fears of a trade war had also receded between the sides since the White House said it had reached a deal to put Chinese tech manufacturers ZTE back in business. The company was drawn into the trade dispute after it was banned from buying US components. Commerce Secretary Wilbur Ross is due to visit Beijing for more talks in early June to try and get China to agree to firm numbers for more US exports to the country.
But now he might receive a frosty welcome.