White House trade adviser says China trade dispute was never 'on hold'

The trademarks could allow Ivanka Trump to market a lifetime's worth of products in China

The White House announced on Tuesday moves aimed at restricting Beijing's access to sensitive American technology, measures that have renewed the prospect of a disruptive trade conflict between the world's two largest economies.

"This kind of public pressure could make it harder for China to respond in a conciliatory fashion", said Claire Reade, another former USA trade official who is now with Arnold & Porter.

In addition to the tariffs, and to "protect our national security", the U.S. "will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology".

Proposed investment restrictions will be announced by June 30 and also take effect at a later date.

The final list of imports covered by the new duty will be announced by 15 June, and tariffs will be imposed on those imports shortly thereafter, it said.

The latest talks focus on USA claims of intellectual property theft by China.

Office of Trade and Manufacturing Policy Director Peter Navarro on the Trump administration's tariffs and trade talks with China.

In retaliation, China announced plans to impose new tariffs of 25 per cent worth United States dollars 50 billion on 106 American products including items like soybeans which could hurt American farmers.

It urged the Chinese government to address these issues in part by ensuring equal participation for foreign and domestic firms in the "Made in China 2025" initiative, as well as investigating the use of tax credits to support the scheme as an alternative to subsidies.

On Wednesday, China's commerce ministry said the US delegation had arrived in Beijing and the teams from both countries would discuss on coming up with a consensus over the next few days.

But in subsequent weeks, negotiations with China focused on narrower concerns, such as the bilateral trade deficit.

"Last week, the President revealed the utter hollowness of his promises by pledging the American government resources to a Chinese company that has violated USA sanctions by selling technology to North Korea and Iran, and that is a known cyber security risk to the United States", she said.

"While obviously more details are needed, this outline represents the kind of actions we have needed to take for a long time, but the president must stick with it and not bargain it away", Sen.

Many experts and US companies, however, warn that China's efforts to protect its high-tech industries and capture USA technology represent the larger threat.

China's Ministry of Commerce responded in a mild fashion Tuesday.

The US Commerce Secretary Wilbur Ross has planned to fly to China this week and carry out the discussion for further progress on this matter.

Trump has faced a backlash among lawmakers this month after announcing he would soften United States sanctions on the Chinese telecoms equipment maker ZTE, which neared collapse due to an April ban on purchasing crucial United States components.

The Commerce Department informed Congress on Friday of a plan to ease penalties on ZTE (ZTCOF), the Chinese phone and telecom equipment maker that was crippled by an export ban issued in April as punishment for what the United States said were violations of its sanctions against North Korea and Iran. China had promised to retaliate in a move that threatened a tit for tat trade war.

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