US-China trade war: Beijing sounds 'global recession' alarm, Washington hits back with 'predatory' economy jibe

China condemned tariffs launched or threatened by U.S. President Donald Trump at a World Trade Organization meeting on Tuesday, saying such "tariff shocks" could upend the global trading system in a warning dismissed as hypocritical by Washington.

President Trump has announced sweeping 10 per cent tariffs on all Chinese imports, prompting Beijing to respond with retaliatory tariffs and to file a WTO dispute against Washington in what could be an early test of Trump's stance towards the institution.

"These 'Tariff Shocks' heighten economic uncertainty, disrupt global trade, and risk domestic inflation, market distortion, or even global recession," China's ambassador to the WTO Li Chenggang said at a closed-door meeting of the global trade body, according to a statement sent to Reuters.


"Worse, the U.S. unilateralism threatens to upend the rules-based multilateral trading system," China's ambassador to the WTO was quoted as saying by Reuters.

Meanwhile, U.S. envoy David Bisbee took the floor in response, calling China's economy a "predatory non-market economic system". "It is now more than two decades since China joined the WTO, and it is clear that China has not lived up to the bargain that it struck with WTO Members when it acceded," he said. "During this period, China has produced a long record of violating, disregarding, and evading WTO rules," he added.

The WTO discussion, which began late on Tuesday and continues Wednesday, is the first time that mounting trade frictions were formally addressed on the agenda of the watchdog's top decision-making body, the General Council.

China vs USA

Disputes between the two top economies at the WTO long pre-date Trump's arrival. Beijing has accused Washington of breaking rules while Washington says Beijing does not deserve its "developing country" status which entitles it to special treatment under WTO rules.

As the Trump administration has announced plans to withdraw or disengage from other global organisations, the WTO has not yet been a major focus for the White House.

However, incoming U.S. Trade Representative Jamieson Greer has called the WTO "deeply flawed".

FAQs

Q1. What do we know about Donald Trump's tariffs on Chinese imports?
A1. US President Donald Trump has announced sweeping 10 per cent tariffs on all Chinese imports, prompting Beijing to respond with retaliatory tariffs and to file a WTO dispute against Washington in what could be an early test of Trump's stance towards the institution.

Q2. What is full form of WTO?
A2. The full form of WTO is World Trade Organization.