China slams US House committee that urged economic reset

BEIJING - Beijing said on Dec 13 a bipartisan US committee that recommended a more aggressive approach to handling competition with China was “full of prejudice and hostility”, accusing it of smears and attacks.

The House Select Committee on the Chinese Communist Party on Dec 12 called for

a “reset” of Washington’s economic ties with Beijing

, including moving China from its current tariff classification to ensure the country abides by its trade commitments.

While many recommendations might not immediately be taken up by lawmakers, the proposals could lead to bipartisan legislation in the future.

China slammed the committee on Dec 13 as “dedicated to attacking and smearing China”.

“It is full of prejudice and hostility and can be said to be completely irrational,” said foreign ministry spokeswoman Mao Ning. “The United States should earnestly respect market economy principles and international trade rules to create a favourable environment for China-US economic and trade cooperation, rather than the opposite.”

The committee’s report follows a November m

eeting between US President Joe Biden and his Chinese counterpart Xi Jinping

, which saw both sides restore military communications and agree to boost cooperation.

But the committee suggested a stress-test of US banks to determine “their ability to withstand a potential sudden loss of market access” to China in case of a possible conflict involving the world’s two biggest economies.

It argued that China’s accession to the World Trade Organisation (WTO) in 2001 “undermined and impaired” benefits that the US and other economies expected to get from expanded trade ties with the country.

China has not embarked upon expected structural reforms and has failed to live up to WTO principles, it said.

Another recommendation was to renew the “China Safeguard mechanism”, which allows tariffs or other curbs to be imposed without having to prove unfair trade practices.

Other suggestions addressed import duties on legacy semiconductors from China and potential trade agreements such as with Taiwan.

The report said the US “must now chart a new path that puts its national security, economic security, and values at the core of its economic engagement with (China)”. AFP