Yellen and Chinese Official Talk as Section 301 Tariff Decision Rumored
Treasury Secretary Janet Yellen, one of the most public voices for rolling back some of the Section 301 tariffs on Chinese goods to ease inflation, spoke with Chinese Vice Premier Liu He, the main trade contact, about "unfair, non-market [Chinese] economic practices," according to a readout of the July 4 call.
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A reporter at a July 4 Chinese press conference asked the Foreign Ministry spokesman if Yellen said the U.S. would cancel tariffs on goods, or if China made any promises to reform the "non-market behaviors."
The spokesman replied, "On the tariff issue, China's position is consistent and clear. The cancellation of all additional tariffs on China will benefit China and the United States, as well as the entire world. According to estimates by a US think tank, the cancellation of all additional tariffs on China will reduce the US inflation rate by 1 percentage point. In the current situation of high inflation, if the tariffs on China are lifted as soon as possible, consumers and enterprises will benefit as soon as possible."
"We have noticed the relevant content in the US press release accusing China of so-called 'non-market behavior.' The U.S. claims are inconsistent with the facts. Facts over the past 40 years have shown that the success of China's economy is the success of the reform and opening-up policy, and the success of the effective combination of the role of the market mechanism and the role of the government."
The Wall Street Journal reported July 4 that President Joe Biden might lift or suspend tariffs on consumer goods, launch a broader exclusion process, and hike tariffs on "strategic items such as industrial machinery and transportation equipment."
The U.S. readout said that "during the candid and substantive conversation," they discussed macroeconomic and financial developments in both countries, the global economic outlook and rising commodity prices and food security challenges, including the impact of Russia's invasion of Ukraine.
The Chinese government also said they talked candidly and constructively about macroeconomics, and the supply chains. "During the call, the Chinese side expressed its concern over issues such as the removal of additional tariffs and sanctions imposed by the United States on China and fair treatment of Chinese companies," the foreign ministry spokesman said.