Beijing’s Initial Reaction to Metals Tariffs? Cautious

Beijing’s Initial Reaction to Metals Tariffs? Cautious
Those talks are being portrayed in China as productive even though Mr. Trump made his tariff announcement on the first full day of Mr. Liu’s visit
and even though Mr. Trump himself did not meet with Mr. Liu.
The broader message from Beijing since Mr. Trump’s announcement on Thursday has been
that Chinese officials still hope to keep talking to the United States and head off broader disputes over trade and investment.
Administration officials blame chronic global overcapacity in both steel
and aluminum manufacturing on China’s many state-owned enterprises in steel and aluminum, as well as the many direct and indirect government subsidies these enterprises receive.
While previous administrations have put their efforts into trying to open China’s markets to greater exports, with limited
success, Trump administration officials have voiced a much greater willingness to limit American imports of Chinese goods.
Mr. Trump and Robert Lighthizer, his United States trade representative, have also focused on shrinking the bilateral trade deficit.
Most of China’s steel and aluminum exports go to countries other than the United States,
and much of it is processed into other goods before it ever leaves China.