China is striking back after the United States informed the World Trade Organization it is opposed to granting the world’s second-largest economy market economy status.
China voiced its opposition to the U.S. move by calling on its trading partners to suspend the use of third-country price comparisons to calculate anti-dumping tariffs on Chinese imports, regardless of China’s market economy status, Caixin reported Friday.
China is seeking market economy status to enjoy better rates on anti-dumping duties.
The new status would also allow China to be exempt from third-country price comparisons.
According to the South China Morning Post, the latest development could throw a wrench into improved relations between the United States and China.
U.S. President Donald Trump and Chinese President Xi Jinping had agreed to $250 billion worth of trade deals during Trump’s visit to Beijing last month.
Speculation is rising whether Trump is preparing to launch a trade war with China.
“The Trump administration remains deeply unhappy with the U.S.-China trade and investment relationship and has been exploring various ways to take policy action to force changes,” wrote Louis Kuijs, an analyst with Oxford Economics.
US-China trade deficit stands at almost $350 billion.
Trump has also sought China’s assistance in increasing pressure on North Korea.
Pyongyang recently launched another long-range missile and is seeking U.S. recognition as a nuclear weapons state.