MUMBAI (Reuters) -China will not dump its goods in other countries due to its trade and tariff war with the U.S., Beijing’s ambassador to India, Xu Feihong, wrote in an article on Tuesday, trying to allay fears of cheap Chinese goods flooding other markets.
In tit-for-tat tariffs between the world’s two biggest economies, China and the U.S. have hiked levies on each other’s goods to over 100% since U.S. President Donald Trump took office in January, rattling global markets.
The trade war has stoked fears that Chinese firms may divert goods to other markets, hitting competitiveness of exports from other countries.
India, the world’s second-biggest producer of crude steel, last week imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.
In an editorial for the Indian Express newspaper, titled “Stand up to Washington’s bullying” and published on Tuesday, Chinese Ambassador Xu said China was focusing on expanding its domestic demand and boost consumption.
“China strictly complies with WTO subsidy disciplines and market rules,” Xu wrote. “We will not engage in market dumping or cutthroat competition, nor will we disrupt other countries’ industries and economic development.”
India’s trade and foreign ministries did not immediately respond to request for comment.
A flood of Chinese steel in recent years has pushed some Indian mills to scale down operations and mull job cuts, and India is one of a number of countries to have contemplated action to stem imports to protect local industry.
India placed restrictions on Chinese investments in the country after a 2020 border clash on their Himalayan frontier soured relations. The two Asian neighbours are, however, taking steps to rebuild their ties in recent months.
China and India should work more closely together, Chinese President Xi Jinping told Indian President Droupadi Murmu this month, while exchanging congratulatory messages to mark the 75th anniversary of the start of their diplomatic ties.
Xu said this month that China was ready to import more Indian products and strengthen trade cooperation with New Delhi.
(Reporting by Sudipto Ganguly; additional reporting by Aftab Ahmed in New Delhi; editing by Michael Perry)
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