China denies forced labor allegations in response to US surcharge

China said on Wednesday (3) that it opposes all forms of "unilateral" tariffs and denied allegations of forced labor, after the United States proposed additional tariffs on imports from 60 economies, citing failures to control trade in goods made with forced labor.

"There is no so-called forced labor in China, and we oppose using it as an excuse for political manipulation," said Mao Ning, spokesperson for China's Ministry of Foreign Affairs, at a press conference.

As shown by CNN, the US proposed on Tuesday (2) the imposition of additional tariffs of 10% or 12.5% on imports from 60 economies, including China, after concluding that its inability to restrict this trade in goods is unjustified and restricts American trade.

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In the statement, the American government states that these countries fail to impose and effectively enforce a ban on the import of goods produced with forced labor.

The USTR (United States Trade Representative) proposes additional tariffs on all products from the economies investigated.

For economies that impose a ban on the import of products derived from forced labor, that have committed to imposing and enforcing such a ban, or for economies that have imposed a partial regime with the effect of preventing the import of such products, the USTR proposes a 10% additional tariff rate. This is the case of Canada, Ecuador, Indonesia, Mexico, Pakistan and the European Union.

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For all other economies, it proposes a rate of 12.5% for additional fees. This group is made up of Brazil, Argentina, China, Japan, United Kingdom, Russia, among other countries.

In the report, the USTR says that China has not effectively implemented or enforced a ban on the import of products related to forced labor. "We find that the lack of implementation and effective enforcement of this ban is unreasonable."

According to the United States government, the results of this investigation indicate that China's acts, policies and practices related to the lack of implementation and effective enforcement of a ban on the import of products associated with forced labor are unreasonable and impose burdens on or restrict trade with the United States.

"The failure of our most important trading partners to address the import of goods produced with forced labor is unacceptable. This creates a dynamic in which American workers are forced to compete globally on an unequal playing field," said Jamieson Greer, United States Trade Representative.

"We will no longer tolerate this disparity. Some trading partners have already taken initial steps to prevent the import of goods produced with forced labor, including through the USMCA and commitments in Reciprocal Trade Agreements. However, each of our trading partners must do more to ensure that trade does not encourage and perpetuate forced labor globally." said Greer.

*with information from Reuters

Source: CNN