History proves, no escalation over trade wars

BEIJING (AP) — China fired back at the United States on Sunday over the two nations' trade dispute, issuing a report that blamed the conflict on the Trump administration but refraining from escalating the trade war.

The report from the Cabinet spokesman's office said China won't back down on "major issues of principle," but offered no sense of whether or how the world's second largest economy might retaliate against U.S. tariffs on goods manufactured in China.

The report said China has kept its word throughout 11 rounds of talks and will honor its commitments if a trade agreement is reached. It accused the United States of backtracking three times over the course of the talks by introducing new tariffs and other conditions beyond what was agreed on.

"But the more the U.S. government is offered, the more it wants," it said, accusing the United States negotiators of "resorting to intimidation and coercion."

"A country's sovereignty and dignity must be respected, and any agreement reached by the two sides must be based on equality and mutual benefit," the report said.

The report, delivered at a Sunday morning news conference, appears to be a bid to shore up China's arguments and justify its position in the face of a protracted dispute. Over recent days, China has been mobilizing its representatives abroad to sell its position with foreign audiences, while the domestic propaganda apparatus has been working overtime to persuade the public of the righteousness of the government's stance.

Linda Lim, a professor at Ross School of Business at the University of Michigan, said the report does not represent an escalation on China's part, but reiterates the government's position in a clear and measured way that leaves the door open for negotiations.

"They threw the ball back into the U.S. court," she said.

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