China Urges United States Against 'Emotional' Trade Decisions as Trump Unveils $60B Tariff on Steel

Chinese Premier Li Kequiang has called on the United States to stop acting "emotionally" on matters of trade and foreign policy. Kequiang, who was recently voted into office for a second five-year term by China's parliament, said there would be no winner if a trade war breaks out between China and the United States. 

RELATED:
China: Constitutional Amendment Eliminates Term Limits

"I hope both countries will act rationally instead of being led by emotions and avoid a trade war," he said during a press conference.

Adding that China would work to "strictly protect" intellectual property rights and would guard foreign investors by ensuring that no foreign firms are forced to transfer technology to their Chinese partners in the midst of China further opening its manufacturing sector to foreign investors.

“The Chinese economy has deeply integrated into the global economy, closing our doors would mean blocking our own way,” he said.

U.S. President Donald Trump announced Monday that he is preparing to impose a package of US$60 billion in annual tariffs against the Chinese products. 

The decision comes after his longstanding threat of penalizing China over intellectual property theft and also to further impose his "America First" policy to create more jobs for U.S. citizens. 

Senior aides said the tariff amount was US$30 billion earlier, but Trump asked to double the amount. The tariff which is expected to be implemented Friday will affect at least 100 products. 

"This looks much more like a president who is excessively eager to apply tariffs than a well-calculated move to defend American interests," Phil Levy, who was a trade adviser to President George W. Bush told the Washington Post. "There are real concerns about Chinese behavior on intellectual property, for example, but there are much more effective ways to address them."

Critics have argued that U.S.-imposed tariffs on China will barely hurt the South Asian country but could lead to trade wars with the countries in the European Union.  

Trump recently imposed steel tariffs, a 25 percent on imported steel and 10 percent tariff on imported aluminum, which analysts say could hurt close allies in Europe more than Beijing. The EU has said that it would take retaliatory measures. 

Within the US as well, several trade groups have urged Trump to avoid imposing tariffs on China, warning it would be "particularly harmful" to the US economy. 

Forty-five U.S. trade associations representing some of the largest companies wrote in a letter, "Tariffs would be particularly harmful." Adding, "We urge the administration not to impose tariffs and to work with the business community to find an effective, but measured, solution to China's protectionist trade policies and practices that protects American jobs and competitiveness."   

"We urge the administration to take measured, commercially meaningful actions consistent with international obligations that benefit U.S. exporters, importers, and investors, rather than penalize the American consumer and jeopardize recent gains in American competitiveness."