China, US head for fresh trade row
Afp, Beijing
China appears headed for a fresh trade spat with the United States, denouncing new US pressure on its trade policies after Washington said it would slap sanctions on imports of Chinese coated paper. US complaints that Chinese goods benefit from too many state subsidies are unlikely to fade away in the immediate future, especially with campaigning well under way ahead of the 2008 US presidential election. Last year, the United States recorded a record trade deficit with China of 232 billion dollars -- more than a quarter of its total imbalance. "This action of the US side goes against the consensus reached by the leaders of both countries to resolve differences through dialogue," commerce ministry spokesman Wang Xinpei said at the weekend, voicing China's "strong dissatisfaction." "China strongly requires the US side to reconsider the decision and make prompt changes," Wang said. The comments followed Washington's announcement Friday that it would slap duties on imports of Chinese coated paper, reversing a 23-year-old US policy of not applying duties to subsidised goods from so-called non-market economies such as China.
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